Wednesday, April 30, 2008

Rosemont raises $165M for copper mine by selling future silver production

Augusta Resources has sold 45% of expected silver production from the Rosemont Copper project to a company for an upfront cash payment of $165 million. Silver Wheaton Corp. had previously announced last December to a binding agreement to purchase 45-90% of the life-of-mine silver that the Rosemont mine will produce. [right: Rosemont copper mine area, from Augusta Resources]. Augusta says the money will be used to fund construction of the mine.

According to Augusta Resources the proposed Rosemont mine is expected to produce annually 220 million pounds of Cu, 4.5 million pounds of Mo, 2.7 million ounces of Ag, and approximately 15,000 ounces of gold as a by-product over the 18.2 year mine life.

The Pit Pundit blog reports:

Current proven and probable reserves at Rosemont contain 61.6 million ounces of silver, measured and indicated resources contain a further 4.9 million ounces and inferred resources contain 9.3 million ounces."

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