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Hudbay is building the $1.5-billion (U.S.) Constancia project in southern Peru.

HudBay Minerals Inc.'s strategy to buy a reluctant Augusta Resource Corp. is likely quite simple and will not require a higher bid.

The Toronto-based mining company recently extended its hostile offer for Augusta and waived its minimum tender condition. It is a risky plan for HudBay, which already owns 16 per cent of Augusta. The company could fail in its bid to acquire the miner and be stuck with a much larger chunk of Augusta that it would have trouble selling if it so desired. But the strategy has worked for HudBay's chief executive officer in the past.

"We are not running an emotional roller-coaster here. We have a game plan and I think it's well executed up to this point," HudBay's CEO David Garofalo said in an interview.

Mr. Garofalo would not say whether he would continue to extend HudBay's offer or sweeten the bid for Augusta, which is developing a large copper mine in Arizona. However, a look at one of his past deals sheds light on how HudBay plans to wear Augusta down.

When Mr. Garofalo was the chief financial officer at Agnico Eagle Mines Ltd., the miner made a friendly all-stock bid for Riddarhyttan Resources AB. The company was a gold miner in Sweden and Agnico already controlled a 14-per-cent stake.

Although Riddarhyttan's management supported the deal, shareholders did not. Shareholders holding a large stake in the company threatened to block the offer. Agnico then extended the bid and lowered the minimum tender condition. Six months later and after multiple extensions, the dissident shareholders caved and Agnico acquired the entire company without raising its offer.

Now Mr. Garofalo and one of the top bankers on the Agnico-Swedish deal are working on the Augusta acquisition. "We are not going to bid against ourselves, that's for sure," said Mr. Garofalo.

HudBay and Augusta had brief talks about a friendly merger in 2010 before Mr. Garofalo joined the company. After becoming CEO, Mr. Garofalo renewed talks in 2012. But discussions fell apart as HudBay increased its stake in Augusta. Augusta felt HudBay was taking advantage of the situation just as the company was getting closer to developing Rosemont. The company then adopted a poison bill to deter HudBay from increasing its stake. HudBay contends the companies disagreed about the timing of Rosemont's progress.

Augusta expects to receive final permits in the second quarter of this year, which would allow the company to start building the copper mine. With that timing, Augusta expects Rosemont to be in full production by early 2017. HudBay says it will take Augusta longer to win approval and get the mine operating.

HudBay, which is operating a zinc, copper and gold mine in Canada and building its own copper mine in Peru, launched its all-stock bid for Augusta in February after talks broke down.

The offer of 0.315 of a HudBay share for every Augusta share is valued at $2.60 based on current prices. The Vancouver-based company was trading at $3.31 at midday on Friday.

Augusta said managers and shareholders controlling a third of the stock could have blocked the deal under HudBay's original proposal, which required approval from two-thirds of Augusta's shareholders. But now the bid is now longer contingent on the minimum tender requirement.

Mr. Garofalo said he has spoken many Augusta shareholders who have all told him that the bid is too low.

"Almost universally, they have said 'not enough.' But it's typical for a bid at this stage. We could have put $10 on the table and they would have said 'not enough,'" he said. "At the end of the day, in the absence of competitive bids, we are the market."

Mr. Garofalo said that eventually Augusta shareholders will be convinced it makes sense to merge with HudBay.

The company recently increased its stake to 11 per cent in small Canadian explorer Panoro Minerals Ltd., which has copper properties in Peru. HudBay has strategic positions in half a dozen other small mineral companies and has been expanding its portfolio this way.

Mr. Garofalo said he has not had merger discussions with Panora, though it may be something the companies will discuss in the future.