Augusta Resource Corp. Sells 45 Percent of Silver in "Rosemont Mine" to Silver Wheaton

In order to fund the development of Rosemount mine, which is close to Tucson, Arizona, Augusta Resource Corp. sold 45 percent of the silver production of the mine to Silver Wheaton. In exchange, Silver Wheaton paid them $165 million in a one-time payment.

The deal is conditioned upon Augusta securing all needed permits and gaining additional development financing.

Over the anticipated 18-year life of the mine, it is expected to generate 220 million pounds of copper, 4.5 million pounds of molybdenum, 2.7 million ounces of silver and 15,000 ounces of gold on a yearly basis.

Augusta Resource Corp. looks to begin production of gold, silver, copper and molybdenum by 2011.

An agreement is expected to be finalized by July 1.