Augusta Announces $25
Million Offering
VANCOUVER, B.C., July 27,
2009 - Augusta Resource Corporation (TSX/NYSE AMEX: AZC) (“Augusta” or
“the Company”) is pleased to announce that it has entered into an
underwriting agreement for a bought deal financing with a syndicate of
underwriters led by Wellington West Capital Markets Inc. for the issuance of
12,380,000 common shares at a price of Cdn$2.02 per common share for gross
proceeds of Cdn$25,007,600.
Augusta has filed a
preliminary short form prospectus under the multi-jurisdictional disclosure
system relating to the public offering of the common shares in the United
States and Canada. The closing of the offering is subject to a number of
conditions, including, without limitation, receipt of all regulatory
approvals, and closing is expected to occur on or about August 13, 2009. 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.
Augusta has also agreed
to grant the underwriters an over-allotment option, exercisable at any time,
in whole or in part, for a period of 30 days following the closing of the
offering, to purchase up to an additional 1,857,000 common shares at a price
of Cdn$2.02 per common share. If the underwriters fully exercise the
over-allotment option, Augusta will receive additional gross proceeds of
Cdn$3,751,140.
A preliminary short form
prospectus relating to the securities has been filed with Canadian securities
authorities, and a registration statement relating to these securities has
been filed with the United States Securities and Exchange Commission but has
not yet become effective. These securities may not be sold nor may offers to
buy be accepted prior to the time the registration statement becomes
effective.
A copy of the preliminary
short form prospectus may be obtained from Wellington West Capital Markets
Inc. at 145 King Street West, Suite 700, Toronto, Ontario M5H 1J8.
About Augusta
Augusta is a base metals
company focused on advancing the Rosemont Copper deposit near Tucson,
Arizona. Rosemont currently hosts a large copper/molybdenum reserve that may
account for about 10% of US copper output once in production in late 2011
(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 by 2012. 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 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 25, 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.
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.
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