Augusta Board unanimously recommends shareholders reject Hud Augusta Board unanimously recommends shareholders reject Hudbay's Unsolicited Offer (cnw)
Directors, Officers and Shareholders holding over 33% of Augusta's Common Shares (on a fully diluted basis) have advised Augusta that they WILL NOT TENDER to Hudbay's Unsolicited Offer
TORONTO, Feb. 24, 2014 /CNW/ - Augusta Resource Corporation (TSX/NYSE MKT: AZC) ("Augusta" or the "Company") today announced that its Board of Directors unanimously recommends that Augusta shareholders REJECT the unsolicited offer (the "Unsolicited Offer") from Hudbay Minerals Inc. ("Hudbay") to acquire all of the outstanding common shares of Augusta.
Commenting on the offer, Richard Warke, Augusta's Executive Chairman, said, "The unsolicited offer is grossly inadequate and does not come close to recognizing the full and fair value of Augusta and the world-class Rosemont project. It not only is opportunistic, failing to compensate Augusta's shareholders adequately at a time when the Company is at an inflection point of significant value creation, but it replaces this lost value with an increased exposure to risk. Our Board rejects this low ball bid, and recommends that our shareholders do not tender their common shares."
In making this recommendation the Board considered a number of factors including the following:
The Unsolicited Offer fails to recognize the strategic value of Augusta's Rosemont project.
a) Rosemont is a scarce, large scale, construction ready copper asset.
b) Rosemont is located in a safe, politically stable and highly desirable jurisdiction.
c) Rosemont is a low capital intensity, low cost project.
d) Rosemont offers expansion and exploration potential.