Augusta Resource Corporation (TSX/AMEX:
AZC; FWB: A5R) (“Augusta” or the “Company”) reports it has negotiated a
non-brokered private placement (the “Placement”) for 10,719,827 common
shares at C$3.50 per share for total gross proceeds of C$37,519,394
subject to regulatory approval. The Placement is 71% (7,600,000)
subscribed by Sumitomo Corporation and Sumitomo Corporation of America
(“Sumitomo”), and 29% (3,119,827) subscribed by two funds managed by US
private investment firm Harbinger Capital Partners (“Harbinger”). Upon
completion of the Placement, Sumitomo will hold 8.7% interest in
Augusta. Harbinger currently holds an 18.6% interest in the Company,
which will increase to 19.9% post closing.
Augusta is pleased to welcome Sumitomo
as a valued shareholder in the Company, as they are world renowned for
building strategic business partnerships. Augusta President and CEO Gil
Clausen says, “We look forward to cultivating a long-term business
relationship with both Sumitomo and Harbinger. For both parties to
invest at this level speaks to the great potential of the Rosemont
copper project.” He adds, “This financing arrangement will enable us to
meet immediate project requirements for long-lead capital equipment, and
fund working capital needs through to project financing at the end of
our permitting process.”
Mitsuhiko Yamada, Executive Officer,
General Manager of Mineral Resources Division 1 of Sumitomo Corporation,
says, “Sumitomo is pleased to take a strategic interest in Augusta
Resource Corporation. We are confident that this investment will become
the foundation of a long standing strategic partnership for development
of the Rosemont copper and molybdenum resources.”
Augusta also reports that M3 Engineering
of Tucson is now integrating study components and completing the final
technical details for the feasibility study. Augusta is looking forward
to publishing the final report within several weeks.
ABOUT AUGUSTA RESOURCE CORPORATION -
Augusta is a mineral exploration and development company responsibly
advancing the Rosemont copper project in Southern Arizona. The Company’s
Rosemont property is located in Pima County, approximately 50
kilometers southeast of Tucson, Arizona, and contains a potentially
world class open-pit copper/molybdenum/silver (“Cu/Mo/Ag”) deposit.
Augusta has a solid asset base, proven management team, and is committed
to becoming a mid-tier copper producer within five years. The company
is traded on the American Stock Exchange and the Toronto Stock Exchange
under the symbol AZC, and on the Frankfurt Stock Exchange under the
symbol A5R.
ABOUT SUMITOMO CORPORATION –
Sumitomo Corporation is one of Japan’s largest integrated trading and
investment business enterprises. The Corporation not only conducts
commodity transactions in all industries utilizing worldwide networks,
but also provides related customers with various financing, serves as an
organizer and a coordinator for various projects, and invests in
businesses from mining and metals, through to the information and
retailing industries.
For additional information please visit www.augustaresource.com or contact:
ON BEHALF OF THE BOARD OF DIRECTORS
“Gil Clausen”
______________________
Gil Clausen
President and CEO
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION
Certain of the statements made and
information contained herein and in the documents incorporated by
reference may contain forward-looking statements or information within
the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward looking statements or information within the meaning of the Securities Act (Ontario).
Forward- looking statements or information include statements regarding
the expectations and beliefs of management. Forward looking statements
or information include, but are not limited to, statements or
information with respect to known or unknown risks, uncertainties and
other factors which may cause the actual results, performance or
achievements of the Company, or industry results, to be materially
different from any future results, performance or achievements expressed
or implied by such forward- looking statements or information.
Forward-looking statements or information are subject to a variety of
risks and uncertainties which could cause actual events or results to
differ from those reflected in the forward-looking statements or
information, including, without limitation, risks and uncertainties
relating to the Company’s plans at its Rosemont Property and other
mineral properties, the interpretation of drill results and the
estimation of mineral resources and reserves, the geology, grade and
continuity of mineral deposits, the possibility that future exploration,
development or mining results will not be consistent with the Company’s
expectations, metal recoveries, accidents, equipment breakdowns, title
matters, labor disputes or other unanticipated difficulties with or
interruptions in production and operations, the potential for delays in
exploration or development activities or the completion of feasibility
studies, the inherent uncertainty of production and cost estimates and
the potential for unexpected costs and expenses, commodity price
fluctuations, currency fluctuations, failure to obtain adequate
financing on a timely basis, the effect of hedging activities, including
margin limits and margin calls, regulatory restrictions, including
environmental regulatory restrictions and liability, the speculative
nature of mineral exploration, dilution, competition, loss of key
employees, and other risks and uncertainties, including those described
under “Risk Factors Relating to the Company’s Business” in the Company’s
Annual Information Form dated March 1, 2007. Should one or more of
these risks and uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from
those described in forward-looking statements. Accordingly, readers are
advised not to place undue reliance on forward-looking statements or
information. We do not expect to update forward-looking statements or
information continually as conditions change, and you are referred to
the full discussion of the Company’s business contained in the Company’s
reports filed with the securities regulatory authorities in Canada and
the United States.