Sunday, February 14, 2010

$230 million deal for future silver and gold sales from Rosemont mine

Augusta Resources announced a signed deal with Vancouver-based mining company Silver Wheaton in which they will pay Augusta upfront cash payments totaling US$230 million and payments of US$3.90 per ounce of silver and US$450 per ounce of gold delivered from the Rosemont mine during the mine life, effective once the mine is fully permitted.

This will cover about 25% of Rosemont's expected $890 million capital cost.  The rest is expected to be financed from project debt. Silver Wheaton gets a long term contract for silver and gold at greatly reduced price compared to today's markets.

Augusta also has a new 30-second animated video clip showing a 3-D block model of the mineral deposit and proposed pit.

No comments:

Post a Comment