By Devika Patel
Knoxville, Tenn., Aug. 24 - Augusta Resource Corp. said it will raise C$29.99 million in a private placement of units.
The company will sell 10,905,590 units at C$2.75 apiece to HudBay Minerals Inc. On closing, HudBay will own 11% of Augusta's issued and outstanding common shares. Each unit consists of one common share and a half-share warrant.
Each whole warrant is exercisable at C$3.90 for 18 months. The strike price represents a 78.08% premium to C$2.19, the closing share price on Aug. 23.
Proceeds will be used for development at the Rosemont project and general working capital.
Augusta is a mineral exploration and development company based in Vancouver, B.C.
| Issuer: | Augusta Resource Corp.
|
| Issue: | Units of one common share and a half-share warrant
|
| Amount: | C$29,990,373
|
| Units: | 10,905,590
|
| Price: | C$2.75
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$3.90
|
| Investor: | HudBay Minerals Inc.
|
| Pricing date: | Aug. 24
|
| Stock symbol: | Toronto: AZC
|
| Stock price: | C$2.19 at close Aug. 23
|
| Market capitalization: | C$302.92 million
|
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