Augusta Resource reports review process in response to Hudbay Minerals offer Augusta Resource (AZC) provided an update on its strategic review process, and on its permitting, and project financing, on track for completion in Q2 and Q3, respectively. The strategic review process initiated by Augusta in response to the unsolicited offer from HudBay Minerals (HBM) continues to be active with ten signed confidentiality agreements related to the current process. Potential bidders remain actively engaged in due diligence and ongoing management discussions. Five site tours with detailed management meetings have been conducted or are scheduled to be completed by the end of this week. Augusta is in the final stages for the two outstanding federal regulatory approvals required to commence construction at its Rosemont Copper Project. Precursors to both of these approvals have been completed and submittals are pending with the agencies for action. Significant progress has been made towards the completion of the project financing debt facility for the construction of Rosemont. The lender group, Augusta and its financial and legal advisors are on track for completing the project financing process in Q3.
Hudbay Minerals downgraded at BofA/Merrill As previously reported, BofA/Merrill downgraded Hudbay Minerals to Neutral from Buy. The firm lowered Hudbay Minerals free cash flow estimates and price target to $9.60 from $12 following a reduction in copper and Brent oil price forecasts and said it does not expect a recovery until 2017.