On February 11, 2010, Augusta Resource Corporation (TSX/NYSE Amex: AZC) announced that it had signed a definitive agreement with Silver Wheaton Corporation under which Augusta agreed to provide Silver Wheaton with silver and gold in an amount equal to 100% of the payable silver and gold to be produced by Augusta's Rosemont Copper Project.

Silver Wheaton will pay Augusta upfront cash payments totaling US$230 million and payments of US$3.90 per ounce of silver and US$450 per ounce of gold delivered during the mine life, or the prevailing market prices if lower. The production payments are subject to an inflationary adjustment. The upfront payment will provide a portion of the project funding for the construction of the Rosemont mine and will be drawn post permitting for construction. Final permitting is expected during the fourth quarter of 2010.

The investment by Silver Wheaton is subject to receipt of all necessary permits to construct and operate Rosemont and Augusta having entered into committed arrangements for sufficient additional financing to construct and operate the mine.

Augusta was advised in the negotiation of this agreement by Josh Lewis of the Vancouver office of Fasken Martineau.