Augusta Resource Corp. could run out of cash unless it receives federal approvals by the end of September to begin construction on its proposed $1.23 billion Rosemont copper mine, the company states in financial reports released late Tuesday.
Augusta is pinning its short-term financial future on the U.S. Forest Service issuing a Final Environmental Impact Statement and a Record of Decision (ROD) on the mine plan of operations in the 3rd Quarter.
Vancouver, B.C.-based Augusta reported it will also need the U.S. Army Corps of Engineers to issue a Section 404 Clean Water Act permit soon after the ROD is released to avoid running out of cash. Continue reading
The U.S. Environmental Protection Agency has notified Augusta Resource Corp. that its wetlands mitigation plan intended to compensate for damage to streams and springs from its proposed Rosemont copper mine fails to comply with the Clean Water Act.
Augusta must obtain a Section 404 Clean Water Act permit from the U.S. Army Corps of Engineers before it can begin construction of its mile-wide, half-mile deep, open-pit mine on the northeastern flank of the Santa Rita Mountains on the Coronado National Forest southeast of Tucson, Ariz.
Last winter, Augusta submitted a mitigation plan to compensate for the loss of 7,000 acres of natural habitat and aquatic resources that would be destroyed by the Rosemont mine.
EPA sharply criticized Augusta’s mitigation plan in a Jan. 25 letter, calling it “scientifically flawed”.
EPA’s broad objections to Augusta’s proposal will likely require the company to make significant, expensive and time-consuming modifications to its mitigation plan.
Toronto-based Dundee Securities is breaking with other analysts following Augusta Resource Corporation (AZC) and has issued a sell recommendation to investors.
“Rosemont’s permitting timeline remains unclear and we believe that there are no short term catalysts to own AZC shares,” Dundee said in a statement released today shortly after Augusta announced a shareholder protection plan. “We believe that the risk level at the moment is too high given the ambiguity of the permitting time line.”
Dundee said it does not expect “that any AZC M&A activity will occur until permitting is complete.”
Augusta Resource Corporation is taking steps to defend a possible hostile takeover as it continues to seek state and federal permits to construct the Rosemont open-pit copper mine in the Santa Rita Mountains on the Coronado National Forest southeast of Tucson.
Vancouver, B.C.-based Augusta announced today that its board has adopted a “Shareholder Rights Plan” designed to increase shareholder value in the event of an unsolicited take-over bid.
The plan goes into effect April 30, 2013 and is subject to shareholder approval at Augusta’s June 20 annual meeting.
The announcement coincided with a 4.85 percent gain in Augusta’s stock to close at $2.38 a share on the NASDAQ. Augusta was trading as low as $2.08 early Thursday before rallying. Continue reading
Augusta Resource Corp. continues its longstanding practice of providing misleading information to investors in its most recent “Investor Presentation” posted on the company’s website.
Vancouver, B.C-based Augusta, which is seeking state and federal permits through its Rosemont Copper Company subsidiary to construct an open pit copper mine southeast of Tucson, claims on page 16 of the presentation that “Rosemont has established funding” for the $1.23 billion project.
The company emphasizes the point by using red type for “established funding.” Continue reading