HudBay Minerals, Inc. (TSX:HBM) made a hostile offer to acquire remaining 84% stake in Augusta Resource Corp. (TSX:AZC) from 1832 Asset Management L.P., JPMorgan Asset Management (UK) Limited and others for approximately CAD 360 million in stock on February 9, 2014. Under the terms of the offer, Augusta shareholders are entitled to receive 0.315 of a Hudbay common share for each Augusta common share held, representing approximately CAD 2.96 per Augusta common share. The offer will be open for acceptance until March 19, 2014, unless extended or withdrawn. Augusta Resource has urged its shareholders to take no actions in connection with the Hudbay offer. HudBay will launch a compulsory acquisition if it will hold not less than 90% of the issued and outstanding Augusta shares at closing. Augusta Resource will have to pay a fee of CAD 20 million in case of termination.

The transaction is subject to customary conditions, registration statement effectiveness, including the deposit under the offer of Augusta common shares that together with the shares held by Hudbay and its affiliates, represent not less than 66 2/3% of Augusta common shares, receipt of all necessary regulatory approvals, approval from Augusta shareholders and Augusta's shareholder rights plan being waived, invalidated or cease-traded. The transaction is approved by the Board of Directors of HudBay. The offer will not be subject to the approval of Hudbay's shareholders and is not subject to any financing or due diligence conditions. The transaction will be accretive to Hudbay shareholders on key per share metrics. On February 10, 2014, Hudbay commenced the offer. As of February 24, 2014 Board of Directors of Augusta has unanimously recommends that Augusta shareholders reject the unsolicited offer from Hudbay Minerals Inc. as the unsolicited offer is grossly inadequate and does not come close to recognizing the full and fair value of Augusta. As of February 24, 2014, the transaction has been approved by the Federal Trade Commission. As on March 14, 2014, HudBay Minerals announced that it has extended its offer to acquire common shares of Augusta and has waived the minimum tender condition under the offer. As on March 31, 2014, HudBay Minerals announced that it has extended its offer to acquire common shares of Augusta till May 5, 2014. On April 14, 2014, HudBay applied to the British Columbia Securities Commission to cease trade the shareholder rights plan (Augusta Poison Pill) of Augusta prior to the expiry of Hudbay's offer. The offer is will not be extended beyond May 5, 2014, unless the remaining conditions to the offer have been satisfied or waived, including the Augusta Poison Pill being waived, terminated or cease-traded.

As of April 17, 2014, Glass, Lewis & Co., has recommended that shareholders of Augusta vote for the continuation of Augusta's shareholder rights plan in the face of the unsolicited offer for Augusta common shares by HudBay Minerals at the shareholders meeting scheduled for May 2, 2014. As of May 2, 2014, HudBay Minerals amended its offer to acquire Augusta to provide a 10-day extension of the offer if Hudbay takes up any shares under the offer and extend the expiration of the offer. The offer will be open for acceptance until May 16, 2014. As announced on May 16, 2014, HudBay has received valid acceptances for 1 million shares and has extended the offer period till May 27, 2014. HudBay has also waived the condition for obtaining at least 66 2/3% of Augusta common shares. As of May 27, 2014, HudBay extends the tender offer to June 9, 2014. As announced on June 9, 2014, the offer has been extended to June 20, 2014. As announced on June 20, 2014, the offer has been extended to July 2, 2014.

HudBay Minerals, Inc. (TSX:HBM) entered into a definitive support agreement to acquire remaining 84% stake in Augusta Resource Corp. (TSX:AZC) from 1832 Asset Management L.P., JPMorgan Asset Management (UK) Limited and others for approximately CAD 400 million in stock and warrant on June 23, 2014. Under the terms of the agreement, HudBay Minerals and Augusta Resource agreed to revise the offer. Under the revised offer, in addition to 0.315 of a Hudbay common share as provided in Hudbay's original offer, Augusta shareholders will also receive 0.17 of a warrant to acquire a common share of Hudbay for each Augusta common share, representing consideration with a value of approximately CAD 3.56 per Augusta common share. The revised offer represents consideration of approximately CAD 3.56 per Augusta common share, consisting of CAD 3.24 of share consideration and CAD 0.32 of warrant consideration. The transaction has been accepted by Augusta Resource and hence the deal's attitude has become friendly. The Board of Directors of Augusta have unanimously recommended that the shareholders should accept the offer. As of July 4, 2014, the offer has been extended to July 16, 2014. As of July 17, 2014, HudBay has taken up 116.233761 million common shares of Augusta that were validly deposited under Hudbay's offer. All of the conditions to the offer have been satisfied including that Augusta's shareholder rights plan be terminated and the initial offering period of July 16, 2014, is now closed. Hudbay has extended the offer until July 29, 2014.

BMO Nesbitt Burns, Inc. and GMP Securities L.P. acted as financial advisors to Hudbay and Goodmans LLP and Milbank, Tweed, Hadley & McCloy LLP acted as legal advisor to Hudbay. Kingsdale Shareholder Services Inc. acted as information agent to HudBay Minerals Inc. Equity Financial Trust Company acted as depository to HudBay Minerals. TD Securities Inc. and The Bank of Nova Scotia (TSX:BNS) acted as financial advisors to Augusta Capital Corporation. Richard Hall, Andrew R. Thompson, Michael Saliba and Gregory D. Beaton of Cravath, Swaine & Moore LLP and Steven M. Harris, Peter S. Hong, Kevin J. Thomson, and Gilles R. Comeau of Davies Ward Phillips & Vineberg LLP acted as legal advisors to Augusta Capital Corporation. Peter Scherer, Arndt Stengel and Ivan Zlatanov of Clifford Chance in Germany acted as the legal advisors to Goodmans LLP. Laurel Hill Advisory Group, LLC acted as information agent for Augusta Resource. Computershare Investor Services Inc. acted as registar to Augusta.

HudBay Minerals, Inc. (TSX:HBM) completed the acquisition of remaining 84% stake in Augusta Resource Corp. (TSX:AZC) from 1832 Asset Management L.P., JPMorgan Asset Management (UK) Limited and others on July 29, 2014. Members of Hudbay's current management team have replaced Augusta's senior management team and certain members of the Augusta Board of Directors have been replaced by nominees of Hudbay. In particular, David Bryson, Alan Hair, Patrick Donnelly and Patrick Merrin have been appointed to the Augusta Board of Directors, joining current directors Lenard Boggio, Timothy Baker and W. Durand Eppler. Gilmour Clausen, Christopher Jennings, Robert Pirooz, Robert Wares and Richard Warke have resigned from the Augusta Board of Directors. HudBay and Augusta entered into an amalgamation agreement on August 22, 2014 for the remaining shares to be acquired in subsequent transaction. The amalgamation of HudBay and Augusta has been completed on September 23, 2014.