Shares for a Vancouver-based mining company have taken a considerable jump the past two days after a larger Canadian firm announced plans over the weekend to buy the exploration company in a deal worth $540 million.
Augusta Resources Corporation (TSX: AZC) shares closed at $2.28 last week before Toronto-based Hudbay Minerals Inc. (TSX: HBM) announced its intention late Sunday to acquire all the remaining shares it didn't already own.
By the end of trading Tuesday, shares settled $2.98 after previously reaching $3.22 the day before.
The Ontario company is offering to exchange .315 of a Hudbay share for each Augusta share.
Hudbay shares were worth $8.99 after closing Tuesday, which represents $2.83 in the company's proposed exchange.
Augusta is in the final stages of acquiring the proper permits for the Rosemont copper mine in Arizona.
Hudbay said in a release the Rosemont project represents "low-cost, long-life assets (that) will enhance Hudbay's position as a leading intermediate base metals mining company with world-class copper production growth."
Augusta is urging its shareholders not to take any action until the board of directors meet to discuss the bid later this week.
Calls to Augusta and Hudbay were not returned by deadline.
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