Augusta Announces Minority JV with Korean Consortium
Vancouver, B.C, September 16, 2010 – Augusta Resource Corporation (TSX/NYSE Amex: AZC )
(“Augusta” or “the Company”) announces that its wholly-owned subsidiary, Rosemont Copper Company
(“Rosemont”), today entered into an Earn-In Agreement with a Korean consortium, the members of which are
Korea Resources Corporation (“KORES”) and LG International Corp. (“LGI”) (together “KORES/LGI”),
whereby KORES/LGI shall acquire a 20% joint venture interest in the Rosemont copper molybdenum project in
Pima County, Arizona in consideration for funding US$176,000,000 (the “Investment”) of the project expenses.
US$70,000,000 will be advanced to fund development pre-permitting and US$106,000,000 will be advanced to
fund construction. As funds for the Investment are advanced, KORES/LGI will earn their proportionate interest
in the joint venture.
Pursuant to the Earn-In Agreement, KORES/LGI and Rosemont have entered into a Joint Venture Agreement
governing their relationship. KORES/LGI and Rosemont have also agreed to enter into an off-take agreement on
market terms in respect of 30% of copper concentrate and 20% of copper cathode and molybdenum
concentrates annually produced by the Rosemont project.
Augusta’s President and CEO Gil Clausen said: “The US$176 million equity investment by KORES and LGI,
together with the US$230 million in funding previously committed by Silver Wheaton and combined with
Augusta's contributions to date will provide about 50% of the total project funding. We are well advanced in
discussions with project finance lenders for the balance of the funding. The steps taken today have substantially
de-risked the project and will enable timely project construction upon receipt of final permits."
About Korea Resources Corporation
Korea Resources Corporation is wholly-owned by the Korean government and is charged with a policy mandate
to further Korea's access to strategically important mineral resources, both dome