by David Safier
The push by Augusta Resource Corporation to build the Rosemont Mine has been running into all kinds of problems lately. Environmental decisions haven't been favorable. The corporation is running out of money and having trouble digging up new funds. And now this.
Augusta Resource Corporation CEO Gil Clausen submitted his resignation from the board of directors of Jaguar Mining Corporation last Friday following a shareholder revolt aimed at forcing Clausen and two other directors off the board.
Mr. Clausen is the highest profile executive of Augusta Resource, whose subsidiary, Rosemont Copper Company, is seeking to a build a massive open pit copper mine in the Santa Rita Mountains on the Coronado National Forest south of Tucson.
Mr. Clausen’s offer to resign as Jaguar’s director could complicate Augusta’s efforts to avert a cash flow crisis and secure $404 million in long-term loans needed to construct the Rosemont mine.
Things continue to look worse for Augusta and better for Southern Arizona.