Rosemont Copper's father corporation has hired financial and legal advisors to prepare for a take over bid.
The Augusta Resources Board of Directors has hired Scotiabank and TD Securities, Inc. as financial advisors, as well as two legal firms for assistance.
Earlier this week, Hudbay Minerals, which owns a portion of Augusta, announced it wanted to purchase Augusta.
Augusta and Rosemont are behind a proposed copper mine in the southeast of Tucson.
In a press release, Augusta officials wrote, “Shareholders are urged to defer making any decision in respect of the Hudbay offer until the Board has had an opportunity to fully review the Hudbay offer and to make a formal recommendation as to its merits.”
In announcing the take over bid on Monday, Hudbay CEO David Garofalo said, “We’ve been patient and supportive share holders in Augusta since our initial investment in 2010. While we are confident that Rosemont will receive all necessary permits, based on our extensive due diligence on Rosemont independent of Augusta, we believe Augusta’s management continues to be overly optimistic about the permitting timeline.”
Garofalo also said Rosemont is a solid project for his company to take over.
Hudbay has operated mines primarily in Canada, with one copper project in Peru.