NEW YORK (TheStreet) -- Augusta Resources (AZC) was rising 23.68% to $2.82 on Monday morning after the base metals company announced that its board of directors would meet to discuss HudBay's press release announcing its intention to acquire all the common shares of Augusta that it does not already own.
HudBay issued a press release on Sunday to announce that it would issue an offer of C$2.96 per share; the company values Augusta at approximately C$540 million on a fully diluted in-the-money basis. HudBay highlighted its plan to add Augusta's Rosemont project (located in Pima County, Arizona), which could produce 243 million pounds of copper per year. If it does, then this could account for 10% of U.S. copper output, which would make Rosemont the third-largest copper mine in the country.
HudBay currently owns 23,058,585 shares of Augusta.
"Since our initial investment in Augusta in 2010, we have been excited about the potential of the Rosemont project. We view the Rosemont project as an attractive complement to our existing portfolio of high quality, long-life assets that fits well with our construction timeline at Constancia," said HudBay president and CEO David Garofalo. "The transaction will be accretive to Hudbay shareholders on key per share metrics and both Hudbay and Augusta shareholders will benefit from our ability to leverage our 87 year history of successful project execution and operations."
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