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Amerigo Extends Option for Completion of Chilean Acquisition

07.02.2003

AMERIGO RESOURCES LTD. reported today that the expiry date of the option to acquire Chilean copper producer Minera Valle Central S.A. (MVC) has been extended from June 30, 2003 to July 3, 2003 to allow completion of final translations of documents into Spanish.  Share transfer documentation and a final share purchase agreement are expected to be executed on July 3, with closing of the acquisition anticipated before July 15, 2003.

Amerigo has the option to purchase, for US$20 million, 100% of the outstanding shares and shareholder loans of MVC, a private Chilean company that has a contract with Chile’s state owned copper producer Codelco through 2021 to process tailings from the El Teniente mine.  US$16.6 million will be paid on closing of the purchase, with the balance of US$3.4 million deferred for either 3 or 5 years, depending whether the price of copper is above or below US$0.82 per pound for the first three years. MVC is currently producing approximately 12,000 tonnes of contained copper in concentrates per annum.

Shareholder and TSX Venture Exchange approvals have been received for the acquisition of MVC, as well as for the CDN$28 million financing which has been undertaken to finance the acquisition.  CDN$26 million has been received through subscriptions for 43,300,000 deposit receipts sold at $0.60 each with a further $2 million allowed for oversubscriptions, scheduled to close before July 17, 2003.

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.

For further information, please contact:   

Jeffrey Giesbrecht, Secretary    (604) 641.2779

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release