VANCOUVER, B.C., February 23, 2010 - Augusta Resource Corporation (TSX/NYSE Amex: AZC)
(“Augusta” or the “Company”) is pleased
to announce that it has entered into an agreement with certain joint
lead managers and joint bookrunners, which will include a syndicate of
underwriters (collectively, the “Underwriters”), for the issuance of
11,820,000 common shares (the “Shares”) of the Company, on a bought deal
basis, at a price of Cdn$2.75 per Share for gross proceeds of
Cdn$32,505,000.
Augusta plans to use the net proceeds of
this financing to advance the development of the Rosemont Copper
property located in Pima County, Arizona and for general working capital
purposes.
The Shares will be offered by way of a
short form prospectus to be filed in certain of the provinces of Canada,
other than Quebec, pursuant to National Instrument 44-101 Short Form
Prospectus Distributions and in the United States on a private placement
basis pursuant to exemptions from the registration requirements of the
United States Securities Act of 1933, as amended.
The offering is scheduled to close on or
about March 12, 2010 and is subject to certain conditions including,
but not limited to, the receipt of all necessary approvals including the
approval of the Toronto Stock Exchange, the NYSE Amex and the
securities regulatory authorities.
This news release does not constitute an
offer to sell or a solicitation of an offer to buy any of the
securities in the United States. The securities have not been and will
not be registered under the United States Securities Act of 1933, as
amended (the “1933 Act”), or any state securities laws and may not be
offered or sold within the United States or to, or for the account or
benefit of, U.S. persons (as defined in Regulation S under the 1933 Act)
absent such registration or an applicable exemption from such
registration requirements.
About Augusta
Augusta is a base metals company focused
on advancing the Rosemont copper deposit near Tucson, Arizona. The
Company is traded on the Toronto Stock Exchange and the NYSE Amex under
the symbol AZC, and on the Frankfurt Stock Exchange under the symbol
A5R.
For additional information please contact:
Meghan Brown, Investor Relations Manager
Tel: (604) 638 2002
Email: mbrown@augustaresource.com
CAUTIONARY STATEMENTS REGARDING FORWARD LOOKING INFORMATION
Certain of the statements made and
information contained herein may contain forward-looking statements
within the meaning of the United States Private Securities Litigation
Reform Act of 1995 and forward-looking information within the meaning of
applicable Canadian securities laws. Such forward-looking statements
and forward-looking information include, but are not limited to
statements concerning: the expected closing date for the offering, the
anticipated use of proceeds from the offering, the placement of shares
with institutional accredited investors in the United States, the
Company’s plans at the Rosemont Project; estimated production; and
capital and operating and cash flow estimates. 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: risks related to the
expected closing of the offering, including market and regulatory risks,
risks related to the anticipated use of proceeds from the offering,
risks related to volatility in the market price of the Common Shares,
risks related to regulatory approval of the offering, history of losses;
requirements for additional capital; dilution; loss of its material
properties; interest rates increase; global economy; no history of
production; speculative nature of exploration activities; periodic
interruptions to exploration, development and mining activities;
environmental hazards and liability; industrial accidents; failure of
processing and mining equipment; labour disputes; supply problems;
commodity price fluctuations; uncertainty of production and cost
estimates; the interpretation of drill results and the estimation of
mineral resources and reserves; legal and regulatory proceedings and
community actions; title matters; regulatory restrictions; permitting
and licensing;; insurance; competition; hedging activities; currency
fluctuations; loss of key employees; as well as those factors discussed
in the section entitled “Risk Factors” in the Company’s prospectus dated
August 17, 2009 . 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 or information. Accordingly, readers are advised not to place
undue reliance on forward-looking statements or information. The
Company disclaims any intent or obligation to update forward-looking
statements or information except as required by law, 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..