Hudbay Minerals Announces Take-up Of Augusta Shares; Extends Offer - Quick Facts

(RTTNews) - HudBay Minerals Inc. (HBM, HBM.TO) and Augusta Resource Corp. (AZC, AZC.TO) announced that Hudbay has taken up 116.23 million common shares of Augusta that were validly deposited under Hudbay's offer to acquire all of the outstanding Augusta Shares not already owned by Hudbay or its affiliates for consideration per Augusta Share of 0.315 of a common share of Hudbay and 0.17 of a warrant to acquire a common share of Hudbay.

The Augusta Shares taken up under the Offer, together with those already owned by Hudbay, represent approximately 92% of the issued and outstanding Augusta Shares.

HudBay Minerals stated that all of the conditions to the Offer have been satisfied (including that Augusta's shareholder rights plan be terminated) and the initial offering period, which was extended until July 16, 2014, is now closed. Hudbay has taken up all Augusta Shares that were validly deposited under the Offer and not properly withdrawn prior to 5:00 p.m. (Toronto time) on July 16, 2014.

Hudbay said that it has extended the Offer until 5:00 p.m. (Toronto time) on July 29, 2014 to enable Augusta shareholders who have not yet tendered their Augusta Shares to accept the Offer.

The Augusta board has unanimously recommended that Augusta shareholders accept the Offer and tender their Augusta Shares to the Offer. Each of the directors and officers of Augusta has already tendered their Augusta Shares to the Offer.

In late June, HudBay Minerals and Augusta Resource announced that they entered into a definitive support agreement, under which HudBay lifted its offer for Augusta shares not already owned by the firm. The revised offer represents a total equity value of C$555 million.