The Range has been hearing more rumbles lately about the possibility that Rosemont Copper might sell the open-pit mining operation it’s developing in the Santa Rita Mountains once it gets all the permits it needs to operate.

But now it appears the Canadian company may be facing a hostile takeover from Hudbay Minerals Inc. The Motley Fool notes:

What: Shares of Augusta Resource Corp. (TSX:AZC) soared 25% today after HudBay Minerals (TSX:HBM) agreed to acquire the rest of the Vancouver-based miner that it doesn’t already own for about $540 million.

So what: The all-stock deal — 0.315 of a HudBay share for each Augusta share held — values Augusta at roughly $2.96 per share and represents a premium of about 18% to its closing price on Friday. HudBay is making the move primarily to advance Augusta’s Rosemont Copper deposit near Tucson, Arizona, but judging by its own stock’s 5% pullback today, Mr. Market isn’t exactly thrilled with the price management is offering to do it.

Now what: If accepted by Augusta, HudBay expects the transaction to be significantly accretive to its key per-share metrics. “The Offer presents a unique opportunity for Augusta shareholders to receive a substantial premium and participate in Hudbay’s low-cost, long-life assets in mining friendly jurisdictions with world-class copper production growth,” said HudBay CEO David Garofalo. “We strongly believe in the merits of this transaction and the benefits to both companies’ shareholders.”

So while Augusta’s upside might be limited at this point, HudBay’s potentially bolstered production prospects might be worth looking into.

Here’s Rosemont’s PR note on Hudbay’s announcement yesterday that it would move to acquire the company:

Augusta Resource Corporation states that its Board of Directors will meet this week to discuss the press release of Hudbay Minerals issued on Sunday, February 9, 2014 that announces their intention to commence an offer to acquire all of the issued and outstanding common shares of Augusta. The Company will update its shareholders following that board meeting. In the meantime, shareholders are urged to take no actions in connection with the Hudbay offer.

This article appears in Feb 6-12, 2014.

Getting hassled by The Man Mild-mannered reporter

8 replies on “A Hostile Takeover of Rosemont Copper?”

  1. “once it gets all the permits it needs to operate.”?? i thought this mine was not a done deal. please tell me it’s not a done deal?

  2. Rosemont doesn’t have all the permits yet but the process is moving forward for them. Opponents still hope to stop the mine.

  3. Serious allegations of Murder and Sexual assault in a HudBay operation in eastern Guatamalla is being litigated in Canadian Courts. A jury was selected in late 2013. This information was available in the public domain over the internet.

  4. The mine is not a “done deal”, but the market certainly suggests it will pass through the remaining hurdles. I believe the EPA has the right to veto the project, but that has only happened a handful of times in the EPA’s history. My guess is most of the politicians (not all) will be pressuring the bureaucrats for this project to proceed, as there is no better election campaign than being a job creator in a region of the country that could use mining jobs that pay well.

  5. And there’s no more deluded than those who call environment destroying insanity like rosemont a “job creator” when it ISN’T…

    Nothing like destroying a watershed in the desert for a few, mostly out of state temp “jobs” — how STUPID is that???

  6. redneck trash at work, wasting PRECIOUS water while wearing T Shirts that say PETA people eating tasty animals. hyuk hyuk fucking teabilly goat fuckers.

  7. Hudbay is a good company and a responsible operator. I have visited the project they are currently developing in Peru and it is being developed to the highest of standards both socially and environmentally.

    The presence of Hudbay here in Pima County would be a positive for all of us, in spite of what many would say. Mining and all basic industries create wealth; wealth that is spread out for many, to be sure some of it will be for the shareholders who took the investment risk. This Sunday, while at mass, I will light a candle in prayer for the people of Tucson by asking that God bless us once again with a vibrant, local copper mining industry.

  8. The highway connecting Sonoita with Interstate-10 is a narrow, winding road which I travel on nearly every day. It is a dangerous road all by itself. Having up to 100 Rosemont trucks compting with me is suicide. Please stop this insane idea. Where is the AZ Department of Transportation?????

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