Closing of $26 Million Financing
June 24, 2003
AMERIGO RESOURCES LTD. is pleased to announce the closing of a private placement with total proceeds of CDN$25,979,100. Deposit receipts totalling 43,298,501 have been issued at a price of $0.60 each. Subject to completion of the acquisition of Minera Valle Central S.A. (MVC), each deposit receipt is convertible into a unit consisting of one share and one-half of one warrant, with each full warrant exercisable until June 18, 2005 at $0.70. The agents were Salman Partners Inc. and CIBC World Markets, Ltd, who will receive a 6% commission at the time of conversion, and who have received 1,169,974 agent’s warrants entitling the agents to purchase units having the same terms for $0.60 until June 18, 2005.
Oversubscriptions for a further $2 million will be accepted on the same terms during the period to July 17, 2003.
42,558,501 deposit receipts and 1,147,774 agent’s warrants (and underlying securities) will have a hold period expiring on October 19, 2003. Deposit receipts of 740,000 and agent’s warrants of 22,200 will have a hold period expiring on October 24, 2003. Insiders of the Company purchased 4,299,334 deposit receipts.
The proceeds of the private placement are sufficient to complete the acquisition of MVC and provide additional working capital to the company. 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 final acceptance of the TSX Venture Exchange.
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.