Private Placement Raises $26 Million
June 17, 2003
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
PRIVATE PLACEMENT RAISES $26 MILLION
AMERIGO RESOURCES LTD., is pleased to announce that commitments have been received for a private placement of $26 million. The private placement will consist of deposit receipts, each of which will be sold for $0.60. Subject to completion of the acquisition of Minera Valle Central S.A. (MVC), deposit receipts will be convertible on or before July 15, 2003 into a unit consisting of one share and one-half of one warrant, with each full warrant exercisable for two years at $0.70 upon closing of the MVC acquisition. The agents will receive a 6% commission and agent’s warrants entitling the agents to purchase up to 3% of the number of units sold for a period of two years at $0.60.
Over subscriptions for a further $2 million will be accepted on the same terms during the period to July 17, 2003.
The proceeds of the private placement are sufficient to complete the acquisition of MVC. The planned expansion of copper production at MVC will be funded out of working capital and the project’s cash flow, taking advantage of improving copper prices and favourable exchange rates.
The acquisition of MVC is subject to satisfactory completion of final due diligence. If the acquisition of MVC is not completed prior to July 15, 2003, the proceeds plus interest will be returned to the subscribers and the deposit receipts will be cancelled.
The completion of the private placement is subject to TSX Venture Exchange acceptance and the approval of the majority of the shareholders of the Company.
Amerigo Resources Ltd. is a Canadian junior exploration company with properties in Ontario and Quebec. In addition to the option to acquire MVC, Amerigo is exploring for Olympic Dam-style copper-gold deposits on four properties in the Sault Ste. Marie area of Ontario.
The common shares and warrants and any securities which may be issued thereunder have not been and will not be registered under the U.S. Securities Act of 1933 as amended and may not be offered or sold in the U.S. or to a U.S. person in the absence of such registration or an exemption therefrom.