TORONTO, May 2, 2014 /CNW/ - Augusta Resource Corporation (TSX and NYSE MKT: AZC) ("Augusta" or the "Company") announced that the British Columbia Securities Commission (the "BCSC") has ruled in favour of the continuance of Augusta's shareholder rights plan approved by its shareholders at the Company's annual general and special meeting today. The rights plan remains in place, unless HudBay Minerals Inc. ("HudBay") extends its offer to purchase Augusta common shares to July 16, 2014 and, in the event that shares are taken up, HudBay then extends its offer for an additional 10 days. If HudBay does extend its offer to July 16, 2014, the rights plan will be cease traded effective as of 5:00 p.m. (Pacific Time) on July 15, 2014.
Augusta's shareholder rights plan will continue to serve its purpose by precluding HudBay from acquiring a minority blocking position while Augusta advances permitting for its Rosemont project and pursues strategic alternatives.
"We are pleased with this outcome from the BC Securities Commission, which reflects the wishes of our shareholders and allows us to continue our strategic review process," stated Gil Clausen, Augusta's President and CEO. "Augusta would like to thank its shareholders for their ongoing support as we continue to work diligently towards completing the permitting process for the Rosemont Project and seek strategic alternatives to maximize shareholder value. We are committed to ensuring that the value-enhancing process is comprehensive and complete."
Reject HudBay's Offer – No Action Required
To REJECT HudBay's offer, no action is required on the part of shareholders. The board of directors' recommendation that Augusta's shareholders REJECT HudBay's unsolicited offer and NOT TENDER their Augusta shares thereto, as well as a more detailed discussion of the reasons for rejecting HudBay's offer is set forth in the directors' circular issued by the board of directors that was mailed to Augusta's shareholders and filed with securities regulatory authorities. Shareholders are advised to read the directors' circular carefully and in its entirety, as it contains important information regarding Augusta, HudBay and HudBay's offer. The directors' circular is available on SEDAR at www.sedar.com and on Augusta's website at www.augustaresource.com.
How to Withdraw
If you have already tendered your Augusta shares to HudBay's offer, you can withdraw your shares by contacting your broker or Laurel Hill Advisory Group, the Information Agent retained by Augusta. Laurel Hill can be reached at 1-877-452-7184 (Toll Free within North America), or by bank and brokers and collect calls outside North America at 416-304-0211 or via email at [email protected].
Augusta is a base metals company focused on advancing the Rosemont Copper deposit near Tucson, Arizona. Rosemont hosts a large copper/molybdenum reserve that would account for about 10% of U.S. copper output once in production (for details refer to www.augustaresource.com). The exceptional experience and strength of Augusta's management team, combined with the developed infrastructure and robust economics of the Rosemont project, propels Augusta to becoming a solid mid-tier copper producer. Augusta's shares are listed and posted for trading on the Toronto Stock Exchange and the NYSE MKT under the symbol AZC.
Cautionary Statements Regarding Forward Looking Information
Certain of the statements made and the information contained in this news release constitutes "forward-looking statements" under United States federal securities laws or "forward-looking information" under Canadian securities laws. These statements and information relate to future events and Augusta's future performance, business prospects or opportunities, including information concerning the unsolicited offer of HudBay and the strategic review process of Augusta, which are subject to certain risks, uncertainties and assumptions. Such forward-looking statements and forward-looking information include, but are not limited to statements concerning Augusta's plans at the Rosemont project, including the timing for obtaining final permits, construction and estimated production, expectations surrounding future financings and refinancings, capital and operating cash flow estimates, changes in market conditions, changes or disruptions in the securities markets and market fluctuations in the prices for Augusta's securities, the lack of any alternative transactions or the terms and conditions of any alternative transactions not being acceptable.
Forward-looking statements or information is frequently, but not always, characterized by words such as "will", "plan", "expect", "project", "intend", "believe", "anticipate", "budget", "forecast", "schedule", "estimate" and similar expressions, or statements that certain events or conditions "may", "should", "could", "might" or "will" occur. The forward-looking statements or information contained in this news release is based on the reasonable expectations and beliefs of management and involves numerous assumptions, known and unknown risks and uncertainties, both general and specific to Augusta and the industry in which the Company operates. Such assumptions, risks and uncertainties include, but are not limited to Augusta's history of losses, requirements for additional capital, dilution, loss of material properties, interest rate increases, global economy, no history of production, speculative nature of exploration activities, periodic interruptions to exploration, development and mining activities, environmental hazards and liability, industrial accidents, failure of processing and mining equipment, labour disputes, supply problems, commodity price fluctuations, uncertainty of production and cost estimates, the interpretation of drill results and the estimation of mineral resources and reserves, legal and regulatory proceedings and community actions, title and tenure matters, regulatory restrictions, permitting and licensing, volatility of the market price of the Company's common shares, insurance, competition, hedging activities, currency fluctuations, loss of key employees, as well as those factors disclosed in Augusta's documents filed from time to time with the securities regulators in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick and Newfoundland and Labrador. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements of the Company, or industry results, may vary materially from those described in this presentation. For further details, reference is made to the risk factors discussed or referred to in Augusta's annual and interim management's discussion and analyses and Annual Information Form on file with the Canadian securities regulatory authorities and available under Augusta's issuer profile on SEDAR at www.sedar.com.
Although Augusta has attempted to identify important factors that could cause actual actions, events, results, performance or achievements to differ materially from those described in the forward-looking statements or information contained in this news release, there may be other factors that cause actions, events, results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Such forward-looking statements and information are made or given as at the date of this news release and Augusta disclaims any intention or obligation to update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, except as required under applicable securities law. The reader is cautioned not to place undue reliance on forward-looking statements or information.
SOURCE: Augusta Resource Corporation
For further information: Investor Contact Information, Letitia Cornacchia, Augusta Resource Corporation, Vice President, Investor Relations and Corporate Communications, Tel: (416) 860-6310, Email: [email protected]; Media Inquiries: Ian Hamilton, DFH Public Affairs, Tel: (416) 206-0118 x222 or (905) 399-6591, Email: [email protected]