TORONTO,
May 5, 2014 /PRNewswire/ - Augusta
Resource Corporation (TSX and NYSE MKT: AZC) ("Augusta" or the
"Company") clarifies the misleading statements made by HudBay
Minerals Inc. ("HudBay") on Augusta's shareholder rights plan in
its press release of this morning and responds to the extension of
HudBay's offer to purchase common shares of Augusta.
Notwithstanding the extension of HudBay's offer to May 16, 2013, Augusta's shareholder rights plan
will remain in full force and effect until the Company's next
annual general meeting of shareholders in 2015.
In accordance with the decision of the British
Columbia Securities Commission, Augusta's shareholder rights plan
will only be cease traded if HudBay extends its offer until
July 16, 2014 and HudBay further
extends its offer for an additional 10 days following any take up
of Augusta shares thereunder. If HudBay complies with these
conditions, Augusta's shareholder rights plan will be cease traded
effective as of 5:00 p.m.
(Vancouver time) on July 15, 2014.
Reject HudBay's Offer – No Action
Required
To REJECT HudBay's offer, no action is required on
the part of shareholders. The board of directors' recommendation
that Augusta's shareholders REJECT HudBay's unsolicited offer and
NOT TENDER their Augusta shares thereto, as well as a more detailed
discussion of the reasons for rejecting HudBay's offer is set forth
in the directors' circular issued by the board of directors that
was mailed to Augusta's shareholders and filed with securities
regulatory authorities. Shareholders are advised to read the
directors' circular carefully and in its entirety, as it contains
important information regarding Augusta, HudBay and HudBay's offer.
The directors' circular is available on SEDAR at
www.sedar.com and on Augusta's website at
www.augustaresource.com.
How to Withdraw
If you have already
tendered your Augusta shares to HudBay's offer, you can withdraw
your shares by contacting your broker or Laurel Hill Advisory
Group, the Information Agent retained by Augusta.
Laurel Hill can be reached at
1-877-452-7184 (Toll Free within North
America), or by bank and brokers and collect calls outside
North America at 416-304-0211 or
via email at assistance@laurelhill.com.
About Augusta
Augusta is a base metals
company focused on advancing the Rosemont Copper deposit near
Tucson, Arizona. Rosemont
hosts a large copper/molybdenum reserve that would account for
about 10% of U.S. copper output once in production (for details
refer to www.augustaresource.com). The exceptional experience
and strength of Augusta's management team, combined with the
developed infrastructure and robust economics of the Rosemont project, propels Augusta to becoming
a solid mid-tier copper producer. Augusta's shares are listed
and posted for trading on the Toronto Stock Exchange and the NYSE
MKT under the symbol AZC.
Cautionary Statements Regarding Forward
Looking Information
Certain of the statements made and the
information contained in this news release constitutes
"forward-looking statements" under United
States federal securities laws or "forward-looking
information" under Canadian securities laws. These statements
and information relate to future events and Augusta's future
performance, business prospects or opportunities, including
information concerning the unsolicited offer of HudBay and the
strategic review process of Augusta, which are subject to certain
risks, uncertainties and assumptions. Such forward-looking
statements and forward-looking information include, but are not
limited to statements concerning Augusta's plans at the
Rosemont project, including the
timing for obtaining final permits, construction and estimated
production, expectations surrounding future financings and
refinancings, capital and operating cash flow estimates, changes in
market conditions, changes or disruptions in the securities markets
and market fluctuations in the prices for Augusta's securities, the
lack of any alternative transactions or the terms and conditions of
any alternative transactions not being acceptable.
Forward-looking statements or information is
frequently, but not always, characterized by words such as "will",
"plan", "expect", "project", "intend", "believe", "anticipate",
"budget", "forecast", "schedule", "estimate" and similar
expressions, or statements that certain events or conditions "may",
"should", "could", "might" or "will" occur. The
forward-looking statements or information contained in this news
release is based on the reasonable expectations and beliefs of
management and involves numerous assumptions, known and unknown
risks and uncertainties, both general and specific to Augusta and
the industry in which the Company operates. Such assumptions,
risks and uncertainties include, but are not limited to Augusta's
history of losses, requirements for additional capital, dilution,
loss of material properties, interest rate increases, global
economy, no history of production, speculative nature of
exploration activities, periodic interruptions to exploration,
development and mining activities, environmental hazards and
liability, industrial accidents, failure of processing and mining
equipment, labour disputes, supply problems, commodity price
fluctuations, uncertainty of production and cost estimates, the
interpretation of drill results and the estimation of mineral
resources and reserves, legal and regulatory proceedings and
community actions, title and tenure matters, regulatory
restrictions, permitting and licensing, volatility of the market
price of the Company's common shares, insurance, competition,
hedging activities, currency fluctuations, loss of key employees,
as well as those factors disclosed in Augusta's documents filed
from time to time with the securities regulators in the provinces
of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New
Brunswick and Newfoundland
and Labrador. Should one or more of these risks and
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results, performance or achievements of the
Company, or industry results, may vary materially from those
described in this presentation. For further details,
reference is made to the risk factors discussed or referred to in
Augusta's annual and interim management's discussion and analyses
and Annual Information Form on file with the Canadian securities
regulatory authorities and available under Augusta's issuer profile
on SEDAR at www.sedar.com.
Although Augusta has attempted to identify
important factors that could cause actual actions, events, results,
performance or achievements to differ materially from those
described in the forward-looking statements or information
contained in this news release, there may be other factors that
cause actions, events, results, performance or achievements not to
be as anticipated, estimated or intended. There can be no
assurance that forward-looking statements or information will prove
to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Such
forward-looking statements and information are made or given as at
the date of this news release and Augusta disclaims any intention
or obligation to update or revise any forward-looking statements or
information, whether as a result of new information, future events
or otherwise, except as required under applicable securities
law. The reader is cautioned not to place undue reliance on
forward-looking statements or information.
SOURCE Augusta Resource Corporation