It’s official: Hudbay and Augusta Resource Corp. have entered into an amalgamation agreement.
Monday’s announcement will make Augusta an indirect, wholly owned subsidiary of Hudbay.
The votes associated with Augusta shares held by Hudbay and its subsidiaries will be sufficient to bring about final approval in September, Hudbay said in a news release.
Hudbay announced in June an all-scrip agreement to scoop up Augusta, which owns the Rosemont copper property in
the southern US, for C$555 million.
The transaction as worth C$15 million more than the C$540 million originally offered in early February as part of Hudbay’s initial hostile takeover bid.
The deal reached was a friendly takeover.
The Vancouver-based Augusta owns the Rosemont project near Tucson, Arizona, which is expected to enter production in early 2017.
Hudbay has been keen on Rosemont since initially investing $30 million in Augusta in 2010.
Hudbay CEO David Garofalo said previously that Hudbay views Rosemont “as an attractive complement to our existing portfolio of high quality, long-life assets that fits well with our construction timeline” at the Constancia copper mine in Peru.
