Topic: How To Invest

Hi Pat: could you give me your opinion on Augusta Resource?

Article Excerpt

Augusta Resource Corp., $2.79, symbol AZC on Toronto (Shares outstanding: 118.7 million; Market cap: $331.1 million), owns 100% of the Rosemont copper/molybdenum/gold/silver property, which is located in Pima County, Arizona. Augusta just issued 11.8 million shares to raise $32.5 million. It will use these funds to continue developing the Rosemont property. Augusta has completed a positive feasibility study on Rosemont. It has also secured water rights, and is well into the permitting stage. Final regulatory approval is expected later this year. In February 2010, Augusta signed a $230-million precious-metals sale agreement with Silver Wheaton (symbol SLW on Toronto). Once the Rosemont project is approved, Augusta will be eligible to receive its first cash payment from Silver Wheaton under this agreement. It will then be able to finalize debt financing for the estimated $890 million U.S. cost of building a mine. The deal with Silver Wheaton covers the sale of all the gold and silver by-products produced from the Rosemont mine. Under the…