On May 2, the British Columbia Securities
Commission (BCSC) ruled on an application by HudBay
Minerals Inc. to cease-trade Augusta Resource Corporation's
shareholder rights plan (the Pill). While the BCSC panel granted an
order cease-trading the Pill as at 5:00pm Vancouver time on July
15, 2014, the decision is a clear victory for Augusta, providing
Augusta with nearly 160 days (from the date on which HudBay
commenced its hostile bid) to find a competing offer. Prior to this
decision, you would have been hard-pressed to find a securities
lawyer that would have bet that a poison pill could survive for
more than 90 days in the face of a hostile bid.
By way of background, Augusta adopted the Pill in the spring of
2013, and sought shareholder approval for the Pill in the fall of
2013 (within the 6 month time limit required under TSX rules). The
Pill had many unusual features, including that it prohibited any
acquisition of more than 15% of Augusta's shares, except
