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Hudbay Seeks Order to Cease Trade

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Hudbay Seeks Order to Cease Trade Augusta's Poison Pill; Offer to Expire May 5, 2014

 

TORONTO, ONTARIO--(Marketwired - April 14, 2014) - HudBay Minerals Inc. ("Hudbay" or the "company") (TSX:HBM) (NYSE:HBM) announced today that it has applied to the British Columbia Securities Commission to cease trade the shareholder rights plan (the "Augusta Poison Pill") of Augusta Resource Corporation ("Augusta") prior to the expiry of Hudbay's offer to acquire all of the outstanding Augusta common shares not already owned by Hudbay for consideration per Augusta share of 0.315 of a Hudbay common share (the "Offer"). The Offer expires at 5:00 p.m. (Toronto time) on May 5, 2014 and will not be extended unless, at or by that time, the remaining conditions to the Offer have been satisfied or waived, including the Augusta Poison Pill being waived, terminated or cease-traded. 

"The time for Augusta shareholders to support our Offer is now," said David Garofalo, president and chief executive officer of Hudbay. "64 days have passed since we announced our Offer and Augusta has failed to produce any alternative transactions. Meanwhile, Augusta continues to make unachievable promises with respect to permitting, financing and project construction." 

The Offer represents the only compelling alternative available to Augusta shareholders. Augusta's stand-alone plan is not viable given Augusta's financial position, and no superior proposals have been made to Augusta shareholders. As long as Augusta continues as a stand-alone entity, its shareholders face significant risk of value erosion and dilution.