Groups Send Letter to Elected Officials Asking They Oppose Rosemont Mine

Posted on January 21, 2014 by admin

A dozen Arizona and national environmental groups have sent a joint letter to elected officials requesting them to oppose the construction of the proposed $1.23 billion Rosemont open-pit copper mine in the Santa Rita Mountains on the Coronado National Forest southeast of Tucson.

“We are writing to express our continued strong opposition to the proposed Rosemont Mine and to urge you to join with us in our effort to stop it,” states the letter sent last week to elected officials. “We are engaged in this process because the Rosemont Mine poses such a serious threat to southern Arizona’s water supplies, air quality, wildlife, cultural heritage, and local economies.”

Vancouver, B.C.-based Augusta Resource Corporation is seeking permits through its Arizona subsidiary Rosemont Copper Company to construct the mile-wide, half-mile deep mine and plans to export the copper overseas. Continue reading →

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As expected, the Coronado National Forest issues draft Record of Decision for Augusta Resource’s proposed Rosemont mine

Posted on December 13, 2013 by admin

As expected, the Coronado National Forest has issued a draft Record of Decision approving Augusta Resource Corporation’s controversial Rosemont copper project.

Vancouver, B.C.-based Augusta announced the Forest Service’s action late Thursday in a press release.

While the decision is an important milestone in the project, it does not clear the way for construction of the $1.23 billion, mile-wide, half-mile deep open pit copper mine in the Santa Rita Mountains on the Coronado National Forest southeast of Tucson.

The U.S Environmental Protection Agency, Pima County, the Bureau of Land Management and the Arizona Department of Environmental Quality have raised questions about the project’s impacts on Davidson Canyon and Cienega Creek, and ADEQ must decide if the mine meets state standards protecting those creeks, the Arizona Daily Star reports. Continue reading →

Posted in EIS, General, Investors, Mining Law | 1 Comment

Red Kite signs preliminary agreement to extend an additional $26 million to Augusta — with contingencies

Posted on November 27, 2013 by admin

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 →

Posted in Investors | 2 Comments

EPA recommends rejection of Rosemont Copper’s Clean Water Act permit application for its proposed massive open-pit mine

Posted on November 21, 2013 by admin

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 →

Posted in Clean Water Act, EPA Criticism, water | 3 Comments

Augusta Resource’s cash reserves plummet to less than $1 million with $83 million loan repayment looming next July

Posted on November 15, 2013 by admin

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 →

Posted in Investors | 4 Comments