Business
Augusta Announces $30 Million Private Placement with HudBay Minerals
Augusta Announces $30 Million Private Placement with HudBay Minerals
About this update from Hudbay Minerals Inc
[{"type":"text","content":"\nAugusta Announces $30 Million Private Placement with HudBay Minerals\n\n\n Aug. 25, 2010 (Newsfile Corp.) -- Vancouver, British Columbia--(August 24, 2010) - NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES All figures in Canadian dollars Augusta Resource Corporation (TSX/NYSE Amex: AZC) (“Augusta” or the “Company”) is pleased to announce that HudBay Minerals Inc. (TSX: HBM)(“HudBay”) has agreed to subscribe for 10,905,590 units on a private placement basis at a price of $2.75 per unit, for proceeds of approximately $30 million. Each unit is comprised of one common share of Augusta and one half of one common share purchase warrant. Each full warrant is exercisable for one common share of Augusta at $3.90 per share for a period of 18 months following closing of the placement. The warrants may be subject to accelerated expiry in certain circumstances. On closing of the financing, HudBay will own 11.0% of Augusta’s issued and outstanding common shares (13.6% on a fully diluted basis). Augusta has also granted to HudBay the right to participate in future equity financings that might be undertaken by Augusta in the two years following closing on a basis that would permit HudBay to maintain its then current percentage equity ownership of Augusta. This right will not impair Augusta's ability to raise financing at the corporate or project level. Proceeds from this placement will be used to fund development at the Rosemont project and general working capital. Augusta President and CEO Gil Clausen said: “HudBay's investment in the Company underscores the quality of our Rosemont copper project and allows us to continue to progress the development of Rosemont on plan and maintain Augusta's strategic flexibility.” Closing of the transaction is subject to stock exchange approval. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States, nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.. The securities, including the common shares to be issued upon the exercise of the warrants, have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 A...