HudBay Minerals announced today that, in the context of the decision of the British Columbia Securities Commission on May 2, 2014, it will be amending its offer to acquire all of the outstanding common shares of Augusta Resource Corporation to provide a 10-day extension of the offer if Hudbay takes up any shares under the offer and extend the expiration of the offer.
The Offer will be open for acceptance until 5:00 p.m. (Toronto time) on May 16, 2014.
In its decision, a panel of the Commission unanimously determined that, unless Augusta has confirmed that it has terminated its shareholder rights plan, the Commission will cease trade the plan (and any securities issued under the plan) effective July 15, 2014, if Hudbay extends its Offer to expire no earlier than July 16, 2014 and provides a 10-day extension of the Offer if it takes up any shares under the Offer.
Hudbay is assessing, among other things, the implications of the announcement by the US Forest Service ("USFS") on May 1, 2014 that "the complexity of the content of the objections" raised in connection with the Final Environmental Impact Statement for the Rosemont project "will require additional time to thoroughly review and give full and deliberate consideration to the issues raised".
Hudbay also is assessing the implications of Augusta’s recent announcement that it was informed by the U.S. Army Corps of Engineers ("USACE") that "there is a shortfall between the mitigation plan it had proposed in April and the mitigation needed to fully offset impacts to waters of the U.S. associated with the [p]roject".
The USFS has stated it will provide an update on the schedule for the Record of Decision ("ROD"), which appears to be subject to further delay, by the end of May, and the USACE has indicated to Augusta that the timing of its permit decision for the Clean Water Act 404 Permit may be affected by the schedule for the ROD.