CORRECTED-BRIEF-Augusta agrees to revised offer from Hudbay

Mon Jun 23, 2014 7:22am EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

(Corrects headline to remove reference to deal value)

June 23 (Reuters) - Augusta Resource Corp : * HudBay and Augusta agree to friendly acquisition * Says HudBay has agreed to increase the consideration that will be received by Augusta shareholders * Revised offer represents a total equity value of C$555 million based on 100% of the fully-diluted * Under revised offer, Augusta shareholders will also receive 0.17 of warrant to acquire common share of HudBay for each Augusta common share * Board of Augusta unanimously determined that consideration under the revised offer is fair to Augusta's shareholders * Board has agreed to terminate augusta's shareholder rights plan * Says each full warrant will be exercisable for one common share of HudBay at an exercise price of C$15.00 * As per revised offer, consideration value is approximately C$3.56 per Augusta common share * Agreed, to pay fee of C$20 million to HudBay under certain circumstances if a transaction is not completed * Says board has unanimously determined that the consideration "under the revised offer is fair to Augusta's shareholders" * Hudbay owns 23.1 million shares of Augusta, representing approximately 16% of the issued and outstanding common shares of Augusta * Source text for Eikon * Further company coverage