VANCOUVER, B.C., August 27, 2010 - Augusta Resource Corporation (TSX/NYSE Amex: AZC)
(“Augusta” or the “Company”) has closed
the approximately $30 million private placement with HudBay Minerals
Inc. (TSX: HBM) (“HudBay”) announced on August 23, 2010.
The transaction comprised 10,905,590
units at $2.75 per unit. Each unit consists of one common share of
Augusta and one half of one common share purchase warrant. Each full
warrant is exercisable for one common share of Augusta at $3.90 per
share for a period of 18 months expiring on February 27, 2012. The
warrants may be subject to accelerated expiry in certain circumstances.
HudBay now owns 11.0% of Augusta’s issued and outstanding common shares (13.6% on a fully diluted basis).
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, nor shall there be any sale of the
securities in any state in which such offer, solicitation or sale would
be unlawful. The securities, including the common shares to be issued
upon the exercise of the warrants, 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 project near Tucson, Arizona.
Rosemont hosts a large copper/molybdenum reserve that may account for
about 10% of US copper output once in production in 2012 (for details
refer to www.augustaresource.com).
The exceptional experience and strength of Augusta’s management team,
combined with the developed infrastructure and robust economics of the
Rosemont project, will propel Augusta to become a solid mid-tier copper
producer. 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 visit www.augustaresource.com or 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 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. Often,
but not always, forward-looking statements and forward-looking
information can be identified by the use of words such as “plans”,
“expects”, “is expected”, “budget”, “scheduled”, “estimates”,
“forecasts”, “intends”, “anticipates”, or “believes” or the negatives
thereof or variations of such words and phrases or statements that
certain actions, events or results “may”, “could”, “would”, “might” or
“will” be taken, occur or be achieved. 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: 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; volatility of the market price of Common Shares;
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 Annual Information Form dated
March 25, 2010. 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.