Amerigo Resources Ltd. 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.. The acquisition was made by Minera Valle Central, S.A., 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’s 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.