Monday, September 20, 2010

Augusta Resources has entered into an agreement to provide an additional $176 million of funding

Augusta announces that its wholly-owned subsidiary, Rosemont Copper Company, today entered into an Earn-In Agreement with a Korean consortium, the members of which are Korea Resources Corporation and LG International Corp, whereby KORES/LGI shall acquire a 20% joint venture interest in the Rosemont copper molybdenum project in Pima County, Arizona in consideration for funding US$176,000,000 of the project expenses. US$70,000,000 will be advanced to fund development pre-permitting and US$106,000,000 will be advanced to fund construction. As funds for the Investment are advanced, KORES/LGI will earn their proportionate interest in the joint venture.

Pursuant to the Earn-In Agreement, KORES/LGI and Rosemont have entered into a Joint Venture Agreement governing their relationship. KORES/LGI and Rosemont have also agreed to enter into an off-take agreement on market terms in respect of 30% of copper concentrate and 20% of copper cathode and molybdenum concentrates annually produced by the Rosemont project.

Augusta’s President and CEO Gil Clausen said: “The US$176 million equity investment by KORES and LGI, together with the US$230 million in funding previously committed by Silver Wheaton and combined with Augusta's contributions to date will provide about 50% of the total project funding. We are well advanced in discussions with project finance lenders for the balance of the funding. The steps taken today have substantially de-risked the project and will enable timely project construction upon receipt of final permits."


  1. You ignored requests for a meeting with the citizens of Az concerning the "proposed" open pit copper mine by Rosemont Copper and now are lying about the project being NEPA approved. I will campaign against you this election. The only brown spots in the green of the Santa Rita mountains are where Rosemont is testing their "reclaimation techniques". They seem rather ineffective methods.

  2. Rosemont does NOT have the geology. They have grossly exaggerated the "probable reserves estimate" and much is wrong about the money, the bogus BLM reports,and the running roughshod over local mining claim owners. They started a WAR.