Scotia note sent this morning on Rosemont.According to a detailed article published in the Arizona Star (a part of Tuscon.com), the US Army Corps of Engineers appears set to issue the long awaited 404 water permit for HBM's proposed Rosemont Cu project in Arizona in the coming days. The media report also disclosed that the regional agency of the EPA has decided not to elevate the project to Washington for further review. This is a very positive development in our view, as elevating the permit would have stoked fears of the EPA potentially exercising their veto on the permit. The 404 permit is the last major permit required for the development of the $2.0 billion Rosemont project. This media report follows last week's press release by the US Government's Natural Resources Committee which stated that the permit could be issued imminently (see our note). In our view, receipt of the 404 permit would remove a significant overhang on HBM shares. We note that Rosemont represents C$4.53 per share or 30% of our asset level 8% NAVPS for the company. We believe that the receipt of the 404 permit could lift HBM shares by as much as 10%-15%. In our view, a fully permitted Rosemont also materially increases the likelihood that HBM becomes an acquisition target for a larger miner.