Jennings Capital Initiates Coverage on Augusta Resources with Speculative Buy Recommendation - Video Posted on

Vancouver, British Columbia--(Newsfile Corp. - June 14, 2013) - Investment firm Jennings Capital initiated coverage on Augusta Resource Corporation (TSX: AZC) (NYSE MKT: AZC). Analyst Garnet Salmon gives the company a speculative buy recommendation and a 12-month target price of $3.60, a 48% premium to the $2.43 price the day the report was issued. has produced a "video news alert" based on this report. If this link is not enabled, please visit and enter "Augusta" in the search box.

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Augusta is a base metals company focused on advancing its Rosemont Copper project near Tucson, Arizona. Rosemont hosts a large copper/molybdenum reserve of 5.9 billion pounds of copper and 194 million pounds of molybdenum.

Over its 21 plus year mine life, Rosemont's 2012 feasibility study estimates the project's average annual production is expected to be approximately 243 million pounds of copper and 5.4 million pounds of moly at average by-product cash costs of $1.02 per pound of copper. The project is nearing the last stages of permitting with the record of decision expected to be received in the third quarter of 2013 and production to start-up in 2015. Once in production, Rosemont is expected to be the third largest copper mine in the United States.

After making an initial 11% investment in Augusta shares in 2010, Hudbay (TSX: HBM) has recently increased its stake to approximately 16%.

Augusta is construction ready and is in advanced discussions with potential parties to source the financing for the remaining $890 million of the $1.2 billion capex at Rosemont.

Both domestic and international lenders are looking to provide debt financing.

Salmon stated, "We believe Hudbay is gaining confidence in the Company's permitting chances and is using its 16% ownership as a call option on the remainder of Augusta's shares once a positive permitting announcement takes place. Permitting announcements could potentially bump the stock upward by 20% to 30%; however, the big upside is the attractiveness of the Company as a takeover target. We believe Augusta could fetch $5.00 in an acquisition."

Augusta currently trades at $2.27, well below the $3.60 target price, and with 144.3 million shares outstanding, the company is capitalized at $328 million.

For more information please visit the company's website, or call Letitia Cornacchia, VP of Investor Relations and Corporate Communications at 416-860 6310 or email

For more information about Jennings Capital or to obtain a copy of their research report, contact your nearest Jennings Capital office. Their branches are listed on their website at

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