Rosemont Deception Of The Day: Bogus Polling

Posted on September 13, 2012 by admin

Rosemont Copper Company’s spin machine is working overtime as the company’s cash reserves dwindle ($9.8 million) and short term debt skyrockets ($83 million due July 2014).

Rosemont’s Vancouver, B.C. owners – Augusta Resource Corp. and its local supporters – are spewing forth a litany of lies and half-truths, so many that it’s impossible to wrap up in one RMT post.

For the next week, RMT will update our loyal readers (don’t forget to share the news!) on the latest Rosemont Whopper.

We lead off with a tip-of-the-hat to Green Valley News editor Dan Shearer for his column on Rosemont “proponent” John Munger.

Shearer ripped Munger for his refusal to identify a phantom pollster that supposedly came up with huge numbers of Southern Arizonans in favor of Rosemont’s proposed open pit copper mine. Continue reading →

Posted in Deceptions, General | Comments Off on Rosemont Deception Of The Day: Bogus Polling

Breaking News: US Fish & Wildlife Service seeks to include Rosemont mine site as “critical habitat” for endangered jaguar

Posted on August 17, 2012 by admin

In a major development that could impact the permitting decisions on the proposed Rosemont copper mine on the Coronado National Forest, the U.S. Fish Wildlife Service (USFWS) announced today it is seeking to establish more than 838,000 acres as critical habitat for the endangered jaguar.

The proposed critical habitat includes the Santa Rita Mountains where Rosemont Copper is seeking permits to construct a mile-wide, half-mile deep open pit copper mine that would dump waste rock and tailings on more than 3,000 acres of national forest.

USFWS will begin a 60-day comment period on the proposed critical habitat on Monday, August 20. Comments must be received by Oct. 19. Requests for public hearings must be submitted on or before Oct. 4.

As part of the proposal, USFWS is preparing a draft economic analysis that will be used to develop the “final designation” of the habitat.

“If the Service determines that the designation of any given areas would cause unacceptable economic or other impacts, such areas could ultimately be excluded from the final designation,” USFWS states.

The Service will publish an announcement and seek public comments on the draft economic analysis when it is completed.

The critical habitat proposal notes that a U.S. Border Patrol agent spotted a jaguar from a helicopter in the Santa Rita Mountains in the summer of 2011.

Rosemont Copper Company wants to dig the open pit mine on private land it owns in the Santa Rita Mountains. However, the company intends dump waste rock and mine tailings on public lands.

The Forest Service is currently reviewing the Draft Environmental Impact Statement on the proposed Rosemont mine and its impacts on the forest.

The Tucson Sentinel is reporting that USFWS spokesman Jeff Humphrey said the habitat designation, if approved, would be a “proceed with caution” sign for federal agencies performing or permitting work in covered areas.

The Center for Biological Diversity hailed the decision as a major step forward in reestablishing the jaguar in North America.

“Today’s habitat proposal will ensure North America’s largest cat returns to the wild mountains and deserts of the Southwest. Jaguars are a spectacular part of our natural heritage and belong to every American — just as surely as bald eagles, wolves and grizzly bears,” the center said in a press release.

 

Posted in Endangered Species | 1 Comment

Augusta’s cash reserves fell to $9.6 million before rescued by Red Kite’s $40 million loan

Posted on August 15, 2012 by admin

RK (Red Kite) Capital Management, a London-based copper hedge fund, is doubling-down on its stake in Augusta Resource Corp., giving the parent of Rosemont Copper Company a lifeline in the face of sharply declining cash reserves.

Augusta Resource’s 2nd Quarter financial reports just released today show its cash reserves declined to $9.6 million as of June 30, down from $31 million at the end of 2011. Without the RK loan, Augusta was on track to run out of cash by the end of the 3rd quarter.

RK Mine Finance Trust I announced Tuesday it will loan Augusta $40 million, in addition to a $43 million loan it extended to Augusta in April. The $83 million, plus interest, is due on July 14, 2014. The loan carries an approximate 6.5% interest rate that is based on LIBOR plus 4.5%.

Augusta has pledged the assets of Rosemont Copper Company as collateral for the RK loan. If Augusta is unable to repay the loan, RK Capital Management, the largest copper trading concern in the world, could assume control of Rosemont Copper.

The RK loan provides Augusta with sufficient funds to carry it forward into next year at the company’s current rate of spending.

Augusta states in its Management Discussion & Analysis report that was released concurrently with the 2nd quarter financial statement that it spent $19.7 million during the first six months of 2012 on the Rosemont copper project.

Augusta is forecasting it will spend $47 million from July 1, 2012 through March 31, 2013, assuming the U.S. Forest Service will issue a Record of Decision on mine permitting by the end of the year.

Augusta states it plans to spend $5 million for engineering, $8 million for environmental impact studies, $7 million for the purchase of mining equipment, $12 million for mine site preparation and $15 for ongoing support activities.

Augusta’s expectation of receiving a ROD by the end of the year is tempered by its warning to investors in its MD&A report that unforeseen delays could have a serious impact on the company.

“Delays in the permitting process or any unplanned expenditures may require the Company to raise additional funds. Unforeseen market events and conditions could impede access to capital or increase the cost of capital.

“These events could have an adverse effect on Augusta’s ability to fund its working capital and other capital requirements and hence, there is no assurance that these initiatives will be successful.”

By any objective standard, with 144 million shares outstanding and an $83 million loan  due in July 2014, Augusta Resource and Rosemont remain a very risky investment with an uncertain future.

Posted in Deceptions, Investors | Comments Off on Augusta’s cash reserves fell to $9.6 million before rescued by Red Kite’s $40 million loan

Tic Tock: Where’s Augusta Resources’ 2nd Quarter financial reports?

Posted on August 14, 2012 by admin

Canadian securities regulations require publicly-traded companies like Augusta Resource Corporation to release quarterly Financial Statements and accompanying Management Discussion & Analysis reports within 45 days of the end of the quarter.

Augusta’s second quarter ended on June 30. Therefore, Augusta should have released the two reports by Tuesday, August 13.

But as of 3 p.m. today, August 14, the company has not posted the reports on its website, nor have they appeared on SEDAR.com, the Canadian national depository of publicly traded financial records.

Prior to releasing the financial reports, Augusta announced Tuesday it has agreed to borrow an additional $40 million from RK Mine Finance Trust I, increasing the total amount borrowed from RK to $83 million. Under an amended agreement, RK has agreed to purchase 20 percent of the gross annual production of copper until 1.5 million tons have been delivered.

Until Augusta releases its financial reports, it’s impossible to determine the long term impact of the additional $40 million RK loan.  But at the previous rate of expenditures, the RK loan could carry Augusta into early next year.

Augusta has pledged all of its Rosemont Copper Company assets as collateral for the original RK loan. If the same terms are in place with the expanded loan and Augusta fails to repay the $83 million loan by July 14, 2014, then London-based RK Capital Management, a copper hedge fund, could assume control of Rosemont Copper Company.

The 2nd quarter financial statement and MD&A should provide crucial insight into Augusta’s deteriorating cash flow situation prior to the RK loan expansion.

At the end of the 1st Quarter on March 30, Augusta had less than $20 million cash on hand and was faced with more than $40 million in ongoing engineering and permitting expenses through the end of 2012.

Augusta continues to state that it will begin construction of the mine in early 2013.

However, ongoing permitting issues, particularly with the U.S. Forest Service review of public comments on the Draft Environmental Impact Statement and U.S. EPA’s concerns over the mine design raise significant questions as to when or even if this misguided project will ever materialize beyond Rosemont’s press releases and slick PR.

 

 

 

 

 

 

Posted in Investors | 2 Comments

Rosemont sought non-union actors for television ad campaign

Posted on August 10, 2012 by admin

Rosemont Copper Company promises to bring hundreds of high-paying jobs that will transform southern Arizona’s economy.

But when the company had the opportunity to show its commitment to paying respectable wages for trade jobs, Rosemont showed its hand.

In April 2010, Rosemont hired Good Faith Casting in Phoenix to find two female actors for a television commercial. Good Faith’s advertisement, which was available on local theatrical websites, stated the jobs were “non-union”.

The fact that Rosemont chose to hire non-union labor is not all that surprising given the company’s refusal to commit to hiring union workers at its proposed open-pit copper mine in the Santa Rita Mountains.

 

Posted in Labor | 1 Comment