Augusta Resource Corporation announces the closing of 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 Kestrel Holdings Ltd., a private company 100% held 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 until April 17, 2010.
A finder’s fee was paid to Peninsula Merchant Syndications Corp., a private merchant bank controlled by Sam Magid. Net proceeds from the transaction will be used to fund general working capital.
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.