Silver Wheaton will pay Augusta $230 million in cash installments under the deal. Augusta expects to receive key operating permits for the project in the fourth quarter.
Rosemont is expected to be "low-cost, long-life and large-scale," according to Silver Wheaton, which believes that Rosemont could increase the amount of silver it produces by about 2.4 million ounces a year from a long-term view. Gold production should increase by about 15,000 ounces.
Silver Wheaton stock has risen 4.0% to $14.95 in Thursday afternoon trading, while Augusta has surged 16.2% to $2.51. Other silver stocks are also trading higher in the late morning session.Pan American Silver (PAAS - Get Report) is up 3.3% at $22.20 and Silver Standard Resources (SSRI - Get Report) is up 1.5% at $18.20. -- Written by Andrea Tse in New York >>See our new stock quote page. Follow TheStreet.com on Twitter and become a fan on Facebook.