The Financial Post reports in its Tuesday, June 24, edition that HudBay Minerals unveiled a friendly deal on Monday to buy Augusta Resource for about $555-million in shares and warrants. The Post's Peter Koven writes that HudBay hiked its original hostile bid by 10 per cent to get the deal done.
When HudBay made its initial offer in February, Augusta chief executive officer Gil Clausen said it had "no chance of success." Augusta's shares were trading far above the bid, and the company thought it would receive all the key permits for its Rosemont copper project in the first half of 2014. That was expected to be a key catalyst for the stock price.
HudBay maintained that Augusta's permitting timeline for the project was too optimistic. That turned out to be correct -- but not for any reason HudBay expected.
Last month, an ocelot was photographed near the Rosemont project site. As a result, the United States Forest Service requested a new round of consultations on the project before permitting would be granted.
Augusta chairman Richard Warke says: "Everyone can do the math. ... If the permit came in on the timeline we were expecting in April, obviously things would have been different."
© 2020 Canjex Publishing Ltd. All rights reserved.