TORONTO, May 22, 2014 /PRNewswire/ - Augusta Resource
Corporation (TSX and NYSE MKT: AZC) ("Augusta" or the
"Company") is pleased to announce that RK Mine Finance Trust I
("Red Kite") has waived the conditions precedent for US$6 million of the third tranche of the Red Kite
loan facility announced in November
2013. The conditions precedent for draw down of the third
tranche, which totals US$7.5 million
includes, among other customary conditions precedent, the
publication of Rosemont's final
Record of Decision ("ROD") by the US Forest Service ("USFS").
Red Kite will now make available US$6
million to Augusta for drawdown on June 2, 2014. The waiver conditions include
a one-time fee of US$175,000, which
Red Kite will add to the loan balance.
The remaining US$1.5 million
amount of the third tranche remains subject to the conditions
precedent, including the publication of Rosemont's final ROD. The conditions
precedent for the fourth tranche of US$5
million include, among other customary conditions precedent,
the issuance of the final Clean Water Act Section 404 Permit by the
Army Corps of Engineers. All other terms of the loan remain
unchanged.
Gil Clausen, Augusta's
President and CEO, commented, "We are pleased to have the continued
support of knowledgeable parties such as Red Kite who have a
tremendous amount of experience in the mining industry and the
processes involved in mine development. Their actions today
demonstrate their confidence in our team and the project, and
provides us the funding necessary to complete permitting and the
value-maximizing process."
About RK Mine Finance
RK Mine Finance provides mining
companies with project financing and metal off-take agreements for
initiation or expansion of mine production and is part of the Red
Kite Group. The Red Kite Group operates across the global
metals industry from offices in Bermuda, Hong
Kong, London, New York, Shanghai and Sydney. Investors in Red
Kite funds include college endowments, foundations, family offices,
pensions and other institutional investors. Further information on
RK Mine Finance can be found at www.rkminefinance.com.
About Augusta
Augusta is a base metals company focused
on advancing the Rosemont Copper deposit near Tucson,
Arizona. Rosemont hosts a
large copper/molybdenum reserve that would account for about 10% of
U.S. copper output once in production (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, propels Augusta to becoming
a solid mid-tier copper producer. Augusta's shares are listed
and posted for trading on the Toronto Stock Exchange and the NYSE
MKT under the symbol AZC.
Cautionary Statements Regarding Forward Looking
Information
Certain of the statements made and the
information contained in this news release constitutes
"forward-looking statements" under United
States federal securities laws or "forward-looking
information" under Canadian securities laws. These statements
and information relate to future events and Augusta's future
performance, business prospects or opportunities, including
information concerning the unsolicited offer of HudBay and the
strategic review process of Augusta, which are subject to certain
risks, uncertainties and assumptions. Such forward-looking
statements and forward-looking information include, but are not
limited to statements concerning Augusta's plans at the
Rosemont project, including the
timing for obtaining final permits, construction and estimated
production, expectations surrounding future financings and
refinancings, capital and operating cash flow estimates, changes in
market conditions, changes or disruptions in the securities markets
and market fluctuations in the prices for Augusta's securities, the
lack of any alternative transactions or the terms and conditions of
any alternative transactions not being acceptable.
Forward-looking statements or information is frequently, but not
always, characterized by words such as "will", "plan", "expect",
"project", "intend", "believe", "anticipate", "budget", "forecast",
"schedule", "estimate" and similar expressions, or statements that
certain events or conditions "may", "should", "could", "might" or
"will" occur. The forward-looking statements or information
contained in this news release is based on the reasonable
expectations and beliefs of management and involves numerous
assumptions, known and unknown risks and uncertainties, both
general and specific to Augusta and the industry in which the
Company operates. Such assumptions, risks and uncertainties
include, but are not limited to Augusta's history of losses,
requirements for additional capital, dilution, loss of material
properties, interest rate increases, global economy, no history of
production, speculative nature of exploration activities, periodic
interruptions to exploration, development and mining activities,
environmental hazards and liability, industrial accidents, failure
of processing and mining equipment, labour disputes, supply
problems, commodity price fluctuations, uncertainty of production
and cost estimates, the interpretation of drill results and the
estimation of mineral resources and reserves, legal and regulatory
proceedings and community actions, title and tenure matters,
regulatory restrictions, permitting and licensing, volatility of
the market price of the Company's common shares, insurance,
competition, hedging activities, currency fluctuations, loss of key
employees, as well as those factors disclosed in Augusta's
documents filed from time to time with the securities regulators in
the provinces of British Columbia,
Alberta, Saskatchewan, Manitoba, Ontario, New
Brunswick and Newfoundland
and Labrador. Should one or more of these risks and
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results, performance or achievements of the
Company, or industry results, may vary materially from those
described in this presentation. For further details,
reference is made to the risk factors discussed or referred to in
Augusta's annual and interim management's discussion and analyses
and Annual Information Form on file with the Canadian securities
regulatory authorities and available under Augusta's issuer profile
on SEDAR at www.sedar.com.
Although Augusta has attempted to identify important factors
that could cause actual actions, events, results, performance or
achievements to differ materially from those described in the
forward-looking statements or information contained in this news
release, there may be other factors that cause actions, events,
results, performance or achievements not to be as anticipated,
estimated or intended. There can be no assurance that
forward-looking statements or information will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Such
forward-looking statements and information are made or given as at
the date of this news release and Augusta disclaims any intention
or obligation to update or revise any forward-looking statements or
information, whether as a result of new information, future events
or otherwise, except as required under applicable securities
law. The reader is cautioned not to place undue reliance on
forward-looking statements or information.
SOURCE Augusta Resource Corporation