IKN

Every why hath a wherefore

Hudbay (HBM) (HBM.to) wants to buy Augusta (AZC) (AZC.to)

Here’s the NR, here’s how it starts:

TORONTO, ONTARIO–(Marketwired – Feb 9, 2014) – HudBay Minerals Inc. (“Hudbay” or the “company”) (HBM.TO)(HBM) today announced that it intends to commence an offer to acquire all of the issued and outstanding common shares of Augusta Resource Corporation (“Augusta”) not already owned by Hudbay (the “Offer”).
Under the terms of the Offer, Augusta shareholders will be entitled to receive 0.315 of a Hudbay common share for each Augusta common share held, representing approximately C$2.96 per Augusta common share (based on Hudbay’s closing share price on the TSX on February 7, 2014). continues here
So, that explains Friday’s action. Leaky leaky.

UPDATE: So if I have my ballpark numbers right, HBM with a market cap of U$1.5Bn is committing that much again to the combo of 1) buy AZC then 2) build Rosemont. And this is on an all-share deal.

I’d hate to be the guy who bought HBM shares for a quick trade in the momentum frenzy on Thursday and Friday then held them over the w/e.

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