VANCOUVER, Feb. 21 /CNW/ - Amerigo Resources Ltd. (TSX:ARG) ("Amerigo" or
the "Company") has today entered into an agreement with a syndicate of
underwriters led by Raymond James Ltd. and including MGI Securities Inc. and
Salman Partners Inc., under which the underwriters have agreed to buy
6,000,000 common shares from Amerigo at an issue price of $2.60 per common
share, representing an aggregate offering of $15,600,000. The Company will
grant the underwriters an option, exercisable up until 48 hours prior to the
closing date of the offering, to purchase up to an additional 1,000,000 common
shares at the issue price. The Company expects to file a preliminary short
form prospectus with the securities regulatory authorities to qualify the
common shares for distribution. Closing is expected on or about March 14,
2006. The net proceeds from the Offering will be used for general corporate
purposes.
The Offering is being made in British Columbia, Alberta, Manitoba,
Ontario and Quebec, and is subject to the approval of regulatory authorities.
The securities offered have not been registered under the U.S. Securities Act
of 1933, as amended, and may not be offered or sold in the United States
absent registration or an applicable exemption from the registration
requirements. This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the securities
in any State in which such offer, solicitation or sale would be unlawful.
Amerigo Resources Ltd. is a Canadian copper and molybdenum producing
company with operations near Santiago, Chile. Tel: (604) 681-2802;
Fax: (604) 682-2802; Web: www.amerigoresources.com; Listing: ARG:TSX
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 Company's filings with the TSX and on SEDAR.
Forward-looking statements are based on the beliefs, estimates and opinions of
the Company's management on the date the statements are made. The Company
undertakes no obligation to update these forward-looking statements if
management's beliefs, estimates or opinions, or other factors, should change.
