NEW YORK (
has agreed to buy all gold and silver resources from
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
is up 3.3% at $22.20 and
Silver Standard Resources
is up 1.5% at $18.20.
-- Written by Andrea Tse in New York
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