Red Kite Mine Finance Trust is requiring Augusta Resource Corporation to achieve key regulatory milestones for its proposed Rosemont copper project before it loans Augusta up to $26 million in additional funds.
Augusta already has spent $83 million in previous Red Kite loans as the Vancouver, B.C.-based speculative mining company seeks regulatory approvals to construct the Rosemont open-pit copper mine in the Santa Rita Mountains on the Coronado National Forest south of Tucson.
Both loans must be repaid by July 21, 2014 or extended three months for an undisclosed fee. If Augusta defaults on these notes, Red Kite assumes all of the assets of Rosemont Copper Company , including the proposed Rosemont Mine. Rosemont Copper is Augusta’s Arizona-based subsidiary.
Augusta announced on Nov. 20 that it has signed a “term sheet”, or preliminary agreement, with Red Kite for the additional $26 million that the company says will be sufficient to “comfortably” see the company through the final permitting stage it says will be completed early next year. Continue reading
The U.S. Environmental Protection Agency is recommending denial of Rosemont Copper Company’s Clean Water Act permit application pending before the U.S. Army Corp of Engineers.
The Tucson-based citizen’s group Save the Scenic Santa Ritas released a copy of EPA’s Nov. 7 letter to the Army Corps Wednesday afternoon through a press release posted on PRNewswire.
The EPA states that Rosemont’s proposed wetlands mitigation plan to compensate for the loss of jurisdictional waters of the United States is “insufficient to avoid ‘significant degradation’ of the aquatic ecosystem.”
The federal water permit is necessary before construction can begin on the proposed massive open pit mine south of Tucson. Rosemont Copper is owned by Vancouver, B.C.-based Augusta Resource Corporation. Continue reading
Augusta Resource Corporation’s cash reserves fell to $749,000 at the end of September, forcing the parent company of Rosemont Copper Company to sell $10 million in bonds to its chairman and a major shareholder to provide working capital to the keep the company operating through the end of this year.
Vancouver, B.C.-based Augusta states it must obtain additional financing early next year or the company will not be able “to continue development of the Rosemont project until such time as permitting is completed and the Company can initiate construction on the project.”
Augusta warned investors in its 3rd Quarter Financial Statement and Management Discussion & Analysis reports filed Nov. 14 with Canadian securities regulators that its financial condition indicates “the existence of a material uncertainty that raises substantial doubt about the Company’s ability to continue as a going concern and is dependent on the Company raising additional debt or equity financing.” Continue reading
Last night’s landslide victory by Karin Uhlich in the Ward 3 Tucson city council race continues a string of defeats since 2011 for candidates supported by Rosemont Copper Company.
Democrat Uhlich won re-election with 58.4 percent of the vote in her race against Republican Ben Buehler-Garcia, who includes Rosemont Copper as one of his business consulting firm’s clients.
Buehler-Garcia told the Tucson Weekly before the election he’s not embarrassed to have received support from Rosemont executives and their allies in the community. “Why would they not support me?” Buehler-Garcia asks. “I work for them. They like me. They know I’m a business-friendly kind of guy.” Continue reading
The Vancouver Sun, British Columbia’s most influential daily newspaper, is reporting Canada’s junior mining sector is in “survival mode” as falling metals prices, rising production costs and a lack of financing is threatening the future of many of the province’s 800 junior mining companies.
Among the junior mining companies based in Vancouver is Augusta Resource Corporation. Augusta’s subsidiary, Rosemont Copper Company, is seeking state and federal permits to construct the mile-wide, half-mile deep Rosemont open-pit copper mine in the Santa Rita Mountains on the Coronado National Forest southeast of Tucson.
“Too few (junior mining companies) are in expansion mode and too many are in contraction mode now,” Mercator Minerals president Bruce McLeod said during a panel discussion according to the Sun’s Oct. 17 story. “Given the lack of capital available for junior exploration companies, (the number of firms operating today) is not sustainable.” Continue reading