Hudbay Minerals announced this week the completion of its $516 million (Canadian) acquisition of Augusta Resource Corporation, triggering a multimillion dollar windfall for Augusta executives and putting Hudbay in control of the controversial Rosemont copper project on the Coronado National Forest southeast of Tucson.
Following Tuesday’s announcement, Augusta Resource was delisted from the New York Stock Exchange, Toronto Stock Exchange and the Frankfort Stock Exchange. Hudbay issued .315 shares of Hudbay stock for each share of Augusta’s 145 million shares of common stock and agreed to issue .17 of a Hudbay warrant for each share of Augusta stock.
Augusta Executive Chairman Richard Warke appears to have earned more than $22 million on the the deal, based on a review of Augusta’s financial reports filed with Canadian securities regulators dating back to 2001. Continue reading