Amerigo Resources Ltd. (TSX: ARG; ARREF: OTC)
(“Amerigo” or the “Company”) is pleased to announce that the
Toronto Stock Exchange (the “TSX”) has accepted Amerigo’s
application for a normal course issuer bid (the “NCIB”).
Under the NCIB Amerigo may purchase up to
10,750,000 common shares (representing 6.14% of its 174,936,288
common shares outstanding as at November 29, 2021) over a period of
twelve months commencing on December 2, 2021. The NCIB will
terminate no later than December 1, 2022.
“Amerigo’s Board of Directors believes that the
purchase of common shares of the Company continues to represent a
highly accretive use of capital,” said Aurora Davidson, Amerigo’s
President and CEO. “We are pleased to have this normal course
issuer bid now in place, having recently completed a substantial
issuer bid where Amerigo retired more than 7.1 million common
shares.”
Under the NCIB, common shares may be purchased
in open market transactions on the TSX at the prevailing market
price at the time of such transaction.
Pursuant to the rules of the TSX, the total
number of common shares that Amerigo is permitted to purchase is
subject to a daily purchase limit of 86,625 common shares, which
represents 25% of the average daily trading volume of 346,502
common shares on the TSX for the six-month period ended October 31,
2021. However, Amerigo may make one block purchase per calendar
week which exceeds the daily purchase restriction.
All common shares purchased under the NCIB will
be cancelled.
The actual number of common shares purchased
pursuant to the NCIB and the timing of such purchases will be
determined by Amerigo. There cannot be any assurance as to how many
common shares, if any, will ultimately be acquired by the
Company.
Pursuant to the recently completed substantial
issuer bid, Amerigo acquired 7,116,345 common shares at a price of
Cdn$1.30 per share. The Company originally sought to purchase
common shares having an aggregate purchase price of Cdn$25 million
by way of a modified Dutch auction for prices ranging between
Cdn$1.18 and Cdn$1.30 per share.
About Amerigo
Amerigo Resources Ltd. is an innovative copper
producer with a long-term relationship with Corporación Nacional
del Cobre de Chile (“Codelco”), the world’s largest copper
producer.
Amerigo produces copper concentrate and
molybdenum concentrate as a by-product at the Minera Valle Central
(“MVC”) operation in Chile by processing fresh and historic
tailings from Codelco’s El Teniente mine, the world's largest
underground copper mine. Tel: (604) 681-2802; Fax: (604) 682-2802;
Web: www.amerigoresources.com; Listing: ARG: TSX.
For further information, please
contact:
Aurora Davidson |
Graham Farrell |
President and CEO |
Investor Relations |
(604) 697 6207 |
(416) 842-9003 |
ad@amerigoresources.com |
Graham.Farrell@HarborAccessLLC.com |
Forward-Looking Information
Forward-looking information
(“forward-looking statements”) is included in this
news release. These forward-looking statements are identified by
the use of terms such as “anticipate”, “believe”, “could”,
“estimate”, “expect”, “intend”, “may”, “plan”, “predict”,
“project”, “will”, “would”, and “should” and similar terms and
phrases, including references to assumptions. Such statements may
involve but are not limited to, Amerigo’s plans, objectives,
expectations and intentions, including Amerigo’s objectives and
expectations regarding the Offer and the size, timing and terms and
conditions of the Offer, the anticipated mailing date of the Offer
Documents and commencement date of the Offer, the expectation that
the Company will reinstate the declaration and payment of dividends
in the fourth quarter of 2021, and other comments with respect to
strategies, expectations, planned operations or future actions.
These forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially from those
anticipated in such statements. Inherent in forward-looking
statements are risks and uncertainties beyond Amerigo’s ability to
predict or control, including risks that may affect Amerigo’s
operating or capital plans; risks generally encountered in the
permitting and development of mineral projects such as unusual or
unexpected geological formations, negotiations with government and
other third parties, unanticipated metallurgical difficulties,
delays associated with permits, approvals and permit appeals,
ground control problems, adverse weather conditions, process upsets
and equipment malfunctions; risks associated with labour
disturbances and availability of skilled labour and management;
risks related to the potential impact of global or national health
concerns, including COVID-19, and the inability of employees to
access sufficient healthcare; government or regulatory actions or
inactions; fluctuations in the market prices of Amerigo’s principal
commodities, which are cyclical and subject to substantial price
fluctuations; risks created through competition for mining projects
and properties; risks associated with lack of access to markets;
risks associated with availability of and Amerigo’s ability to
obtain both tailings from Codelco’s Division El Teniente’s current
production and historic tailings from tailings deposits; risks with
respect to the ability of Amerigo to draw down funds from lines of
credit and the availability of and ability of Amerigo to obtain
adequate funding on reasonable terms for expansions and
acquisitions; mine plan estimates; risks posed by fluctuations in
exchange rates and interest rates, as well as general economic
conditions; risks associated with environmental compliance and
changes in environmental legislation and regulation; risks
associated with Amerigo’s dependence on third parties for the
provision of critical services; risks associated with
non-performance by contractual counterparties; title risks; social
and political risks associated with operations in foreign
countries; risks of changes in laws affecting Amerigo’s operations
or their interpretation, including foreign exchange controls; and
risks associated with tax reassessments and legal proceedings.
Notwithstanding the efforts of Amerigo and MVC, there can be no
guarantee that Amerigo’s or MVC’s staff will not contract COVID-19
or that Amerigo’s and MVC’s measures to protect staff from COVID-19
will be effective. Many of these risks and uncertainties apply not
only to Amerigo and its operations, but also to Codelco and its
operations. Codelco’s ongoing mining operations provide a
significant portion of the materials Amerigo processes and its
resulting metals production, therefore these risks and
uncertainties may also affect their operations and in turn have a
material effect on Amerigo.
Actual results and developments are likely to
differ, and may differ materially, from those expressed or implied
by the forward-looking statements contained in this news release.
Such statements are based on several assumptions which may prove to
be incorrect, including, but not limited to, assumptions about:
- general business and economic
conditions;
- interest rates;
- changes in commodity and power
prices;
- acts of foreign governments and the
outcome of legal proceedings;
- the supply and demand for,
deliveries of, and the level and volatility of prices of copper and
other commodities and products used in Amerigo’s operations;
- the ongoing supply of material for
processing from Codelco’s current mining operations;
- the ability of Amerigo to
profitably extract and process material from the Cauquenes tailings
deposit;
- the timing of the receipt of and
retention of permits and other regulatory and governmental
approvals;
- Amerigo’s costs of production and
its production and productivity levels, as well as those of
Amerigo’s competitors;
- changes in credit market conditions
and conditions in financial markets generally;
- Amerigo’s ability to procure
equipment and operating supplies in sufficient quantities and on a
timely basis;
- the availability of qualified
employees and contractors for Amerigo’s operations;
- Amerigo’s ability to attract and
retain skilled staff;
- the satisfactory negotiation of
collective agreements with unionized employees;
- the impact of changes in foreign
exchange rates and capital repatriation on Amerigo’s costs and
results;
- costs of closure of various
operations;
- market competition;
- tax benefits and tax rates;
- the outcome of Amerigo’s copper
concentrate sales and treatment and refining charge
negotiations;
- the resolution of environmental and
other proceedings or disputes;
- the future supply of reasonably
priced power;
- rainfall in the vicinity of MVC
continuing to trend towards normal levels;
- average recoveries for fresh
tailings and Cauquenes tailings;
- Amerigo’s ability to obtain, comply
with and renew permits and licenses in a timely manner; and
- Amerigo’s ongoing relations with
its employees and entities with which it does business.
Future production levels and cost estimates
assume there are no adverse mining or other events which
significantly affect budgeted production levels. Although Amerigo
believes that these assumptions were reasonable when made, because
these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible
to predict and are beyond Amerigo’s control, Amerigo cannot assure
that it will achieve or accomplish the expectations, beliefs or
projections described in the forward-looking statements.
Amerigo cautions you that the foregoing list of
important factors and assumptions is not exhaustive. Other events
or circumstances could cause Amerigo’s actual results to differ
materially from those estimated or projected and expressed in, or
implied by, its forward-looking statements. You should also
carefully consider the matters discussed under Risk Factors in
Amerigo’s Annual Information Form. The forward-looking statements
contained herein speak only as of the date of this news release and
except as required by law, Amerigo undertakes no obligation to
update publicly or otherwise revise any forward-looking statements
or the foregoing list of factors, whether as a result of new
information or future events or otherwise.
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