Amerigo sells strategic stake in Chariot Resources Limited for $24.1 million, representing a gain of $9.68 million
October 5, 2006
VANCOUVER, BRITISH COLUMBIA â€" October 5/CNW/Amerigo Resources Ltd. (TSX:ARG) ("Amerigo") announces that it has entered into an agreement to sell a total of 31,812,500 common shares and 11,532,000 share purchase warrants of Chariot Resources Limited ("Chariot") to Rio Narcea Gold Mines Ltd. for $0.65 per common share and $0.30 per share purchase warrant. Total proceeds of the sale are $24,137,725, which represents a gain to Amerigo of $ 9,679,857 and a return of approximately 68% over the seven month period since acquisition.
Closing is scheduled to occur on or before October 20, 2006.
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:
Michael J. Kuta, General Counsel & Secretary
Amerigo Resources Ltd. (604) 697-6201
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 Companyâ€™s filings with the TSX and on SEDAR. Forward-looking statements are based on the beliefs, estimates and opinions of the Companyâ€™s management on the date the statements are made. The Company undertakes no obligation to update these forward-looking statements if managementâ€™s beliefs, estimates or opinions, or other factors, should change.