RE:RE:FP Article HudBay goes after Augusta
HudBay Minerals Inc. has launched an unsolicited bid for Augusta Resource Corp.
It’s an all-stock offer – 0.315 of a HudBay share and worth what the company says is $2.96 a share – that aims to grab control of Augusta’s Rosemont copper project near Tuscon.
“Given the fundamental value of Rosemont and the significant share price re-rating we expect upon securing the project’s two remaining major permits, we view HudBay’s unsolicited takeover offer to be low,” said analyst Christopher Change of Laurentian Bank Securities.
“In our view, a positive permitting decision alone should improve Augusta’s share price by more than 18 per cent.”