The following is an excerpt from the Canaccord Genuity Morning Coffee newsletter.
Augusta Resource Corp. (
TSX: T.AZC,
Stock Forum) has warned of another delay in getting a permitting decision on whether it can develop its Rosemount copper project in Arizona.
Management said the decision may be delayed until the third quarter after the U.S. Forest Service commented informally that it may not be in a position to make a final decision by the end of the second quarter.
The delay comes as the forest agency weighs whether further consultation is necessary in part following the recent sighting of an ocelot near the proposed mine development area. Ocelots, also known as dwarf leopards, are listed as endangered by the U.S. Fish & Wildlife Service.
Commenting on the development, AZC’s CEO, Gil Glausen stated, “While we are disappointed with any delay, our expectation is that these final issues will be handled in a timely manner.”
Separately, AZC said Red Kite has agreed to allow the miner to draw down another $6 million of its loan facility, waiving a condition that the company first obtain a permit from the U.S. Forest Service.
AZC is currently the subject of a takeover pursuit from
HudBay Minerals Inc. (
TSX: T.HBM,
Stock Forum), originally launched in February. HBM already owns 16% of AZC shares. However AZC has rejected the approach.
Augusta shares rose 0.64% to $3.15 Monday, leaving a market cap of $458 million, based on 154.4 million shares outstanding. The 52-week range is $3.64 and 48 cents.