Silver Wheaton Buys Augusta Resource

Silver Wheaton has agreed to buy gold and silver resources from Augusta Resource's Rosemont Copper Project in Pima County, Arizona.
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NEW YORK (

TheStreet

) --

Silver Wheaton

(SLW)

has agreed to buy all gold and silver resources from

Augusta Resource's

(AZC)

Rosemont Copper Project in Pima County, Arizona.

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)

is up 1.5% at $18.20.

-- Written by Andrea Tse in New York

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