Hudbay Extends Augusta Offer Until May 27

(RTTNews) - HudBay Minerals Inc. (HBM.TO, HBM) said Friday that it has extended its offer to acquire all of the outstanding shares of Augusta Resource Corp. (AZC.TO) not already owned by Hudbay for consideration per Augusta share of 0.315 of a Hudbay common share until 5:00 p.m., Toronto time, on May 27.

Hudbay said it continues to monitor developments with respect to Augusta's applications for permits required for the Rosemont project. Hudbay is assessing, among other things, the potential implications of a letter dated May 13 that the U.S. Army Corps of Engineers is reported to have sent to Augusta. The letter advises Augusta that, in the context of its Clean Water Act section 404 permit application, Augusta's proposed compensatory mitigation is inadequate and USACE staff is changing its focus from compensatory mitigation to preparing a final permit decision.

On March 14, Hudbay waived the condition that there shall have been validly deposited under the offer and not withdrawn, at or prior to the expiration of the offer, such number of Augusta shares that, together with the Augusta Shares already owned by Hudbay and its affiliates, represents not less than 66 2/3% of the Augusta shares.