HudBay closes offer for Augusta with 96 per cent of shares tendered

TORONTO – HudBay Minerals Inc. (TSX:HBM) said late Tuesday that it has now received about 96 per cent of the shares of Augusta Resource Corp., and it will now buy up the rest at the offer price, closing out a hard-fought takeover battle.

The two companies reached a friendly agreement last month after Toronto-based HudBay improved its all-equity bid — worth about $555 million at the time.

Since then, HudBay shares have since risen in value to $11.45 at the close on Tuesday from $10.29 at the end of trading on June 20.

HudBay’s final offer was 0.315 of a common share, worth about $3.61 at the close on July 28, plus 0.17 of a warrant to buy a HudBay common share. The warrants become valuable if HudBay’s stock rises above $15 within four years.