Augusta Resource (TSX:AZC, StockForum), a Toronto-based firm engaged in the exploration and development of North American mineral properties, responded today to Hudbay Minerals (TSX:T.HBM, Stock Forum) recently proposed acquisition of the company issued on Sunday, February 9, 2014.
According to the news release, company directors will meet this week to discuss Hudbay's publicized intentions, where Hudbay has proposed to purchase 100% of all issued and outstanding shares in Augusta.
The board will notify shareholders of their findings in regards to the acquisition following the completion of this week's meeting and until that point, the Board cautions shareholders to take no actions in connection to proposed Hudbay transaction.
The Toronto company says the offer values Augusta at roughly $540 million on a fully diluted basis.
Augusta was in the news recently when the company closed the Red Kite loan facility increase in the middle of December.
Shares climbed 25.10% on the news to $3.14 per share.
Currently there are 144.6m outstanding shares with a market cap of $453.9 million.