TORONTO - Augusta Resource Corporation (TSX/NYSE MKT: AZC) ("Augusta" or "the Company") is pleased to announce that it closed the first tranche (a "Note Offering") for $2 million (CDN) of the previously disclosed financing providing for an aggregate principal amount of $10 million (CDN) in convertible unsecured notes of the Company (the "Notes").
The Notes have a five year maturity date from the time of issuance, bear interest at 7% per annum, and will have a conversion price equal to a premium of 30% of the volume weighted average trading price of the Company's common shares on the TSX for the five trading days ending the last business day before the closing date of each tranche. The Company, at its sole option and any time prior to October 31, 2013, may issue Note Offerings in multiple stages aggregating to the $10 million.
The first $2 million Note Offering closed on September 4, 2013 with a conversion price of $2.87 (CDN) or $2.74 (USD) currency spot rate at close of business Thursday.
"This flexible financing allows the Company to advance our project needs and corporate interests as we solidify the project financing and construction planning for Rosemont," said Gil Clausen, Augusta's President and CEO. "The structure of this offering provides us the funding required in a minimally dilutive manner as we expect to achieve positive milestones in the near term.
For more information on Rosemont Mine and conservation programs, please go to https://rosemontcopper.com/conservation.html