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Announces $5 Million Private Placement
Mar 30, 2009 11:01AM
March 30, 2009
Augusta Announces $5 Million Private Placement
VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 30, 2009) - Augusta Resource Corporation (TSX:AZC)(NYSE Alternext US:AZC)(NYSE Amex:AZC.A) ("Augusta" or "the Company") has arranged for a non-brokered private placement of 3.35 million units at a price of $1.50 per unit for gross proceeds of $5,025,000. The transaction is fully subscribed by Vancouver mining entrepreneur Ross Beaty.
Each unit comprises one common share and one non-transferable share purchase warrant entitling the holder to purchase one common share at a price of $2.30 per common share for a period of one year following the close of the transaction.
Augusta President and CEO Gil Clausen said: "We are pleased to have Mr. Beaty increase his position in Augusta, which now stands at 12.3%. He is a knowledgeable mining investor who appreciates the value of our Rosemont project development plans."
A finder's fee is payable to Peninsula Merchant Syndications Corp., a private merchant bank controlled by Sam Magid, co-founder of Salman Partners Inc. Net proceeds from the transaction will be used to fund general working capital. Closing of the transaction is subject to regulatory approvals.
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 (refer to Augusta's website at www.augustaresource.com for details). 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 within the next four years. 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.