Acquisition of Common Shares and Warrants of Los Andes Copper Ltd.
August 28, 2008
VANCOUVER, BRITISH COLUMBIA ‚Ä" August 28/Amerigo Resources Ltd. (TSX:ARG) (‚ÄúAmerigo‚ÄĚ or the ‚ÄúCompany‚ÄĚ) announces that it has acquired beneficial ownership of 4 million common shares and 4 million share purchase warrants in the capital of Los Andes Copper Ltd. (‚ÄúLos Andes‚ÄĚ). The acquisition was made by Minera Valle Central, S.A. ("MVC"), an affiliate over which Amerigo exercises control and direction, pursuant to a private placement completed on August 21, 2008. The private placement consisted of units priced at $0.50 each, with each unit comprised of one common share and one share purchase warrant, and with each warrant entitling the holder to acquire one additional common share of Los Andes at a price of $0.70 per share until August 21, 2009.
Amerigo currently owns 4,015,000 common shares and 2,007,500 common share purchase warrants in Los Andes, with each warrant entitling the holder to acquire one additional common share of Los Andes at a price of $0.75 per share to November 24, 2008. With the latest acquisition, Amerigo now has beneficial ownership of 8,015,000 common shares and 6,007,500 share purchase warrants of Los Andes, representing approximately 14.08% of Los Andes‚Äôs issued and outstanding common shares (calculated to include the common shares issuable on the exercise of the 6,007,500 warrants).
MVC has purchased these securities for investment purposes. Amerigo believes in the potential of Los Andes and its Vizcachitas Project in Chile. Neither MVC nor Amerigo currently has any intention to acquire beneficial ownership of additional securities of Los Andes.
Amerigo Resources Ltd. is a Canadian junior company producing copper and molybdenum from its MVC operations near Santiago, Chile. Tel: (604) 681-2802; Fax: (604) 682-2802; Web: www.amerigoresources.com; Listing: ARG:TSX.
For further information, please contact:
Dr. Klaus Zeitler, President (604) 681-2802
Amerigo Resources Ltd. (604) 218-7013
The Toronto Stock Exchange has not reviewed nor accepted responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management. Statements contained in this news release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimated results. Such risks and uncertainties are detailed in the Company‚Äôs filings with the TSX and on SEDAR. Forward-looking statements are based on the beliefs, estimates and opinions of the Company‚Äôs management on the date the statements are made. The Company undertakes no obligation to update these forward-looking statements if management‚Äôs beliefs, estimates or opinions, or other factors, should change.