Amerigo Resources Ltd

Published : March 19th, 2015

Amerigo Secures Cauquenes Bank Financing Without Dilution to Shareholders

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Amerigo Secures Cauquenes Bank Financing Without Dilution to Shareholders

October 12, 2005

March 19, 2015

N.R. 2015-3

Amerigo Secures Cauquenes Bank Financing Without Dilution to

Shareholders

VANCOUVER, BRITISH COLUMBIA - March 19, 2015/Amerigo Resources Ltd. (TSX:ARG) ("Amerigo" or the "Company") announced today that the Company has received approval from a bank syndicate consisting of Mandated Lead Arrangers Banco Bilbao Vizcaya Argentaria ("BBVA") and Export Development Canada ("EDC") for a loan facility (the "Bank Facility") to MVC, the Company's Chilean operating subsidiary, for funding of up to $64.4 million for construction and approximately $9 million for an associated "IVA" (value added tax) loan in Chilean pesos to be used in phase 1 of the expansion of MVC's operations for the processing of higher grade tailings from the Cauquenes deposit.

The Company has secured $30 million in additional credit facilities for the expansion, including the previously announced $17 million expansion support agreement with Codelco's El Teniente Division, and a $13 million standby line of credit from three Amerigo shareholders (the "Standby LOC") that may be drawn down at Amerigo's option if required.

Dr. Klaus Zeitler, Amerigo's Chairman and CEO, stated "We are pleased to announce the full funding for phase 1 of the Cauquenes expansion without dilution to existing shareholders. The Company anticipates formal closing of the Bank Facility and initial drawdown of funds will take place before the end of March, 2015. Phase 1 is projected to require $71 million in capital expenditures, $20 million of which has been incurred to date, and is expected to result in an increase in MVC's copper production to an average annual rate of 70 million pounds starting in Q4 this year. After completion of phase 1, MVC anticipates upgrading its existing plant and operations in one or more additional stages, depending on internal cash flow and/or financing, which the Company believes will further increase MVC's production."

Edmundo Lujan, Executive Director, Project Finance LATAM for BBVA, added "As structuring bank BBVA is very pleased to lead and participate in this financing. We look forward to the execution of the expansion, which is a major milestone for both Amerigo and MVC."

BBVA is a multinational group providing financial services in over 31 countries and to 50 million customers throughout the world. The Group has a solid leading position in the Spanish market, where it began operating over 150 years ago. It also has leading franchises in South America, it is the main financial institution in Mexico, and one of the 15 biggest banks in the United States, where it has a leading franchise in the Sunbelt region. Today BBVA employs over 109,000 people worldwide and has about a million shareholders. For more information about BBVA please visit www.bbva.com.

EDC is Canada's export credit agency, providing financing and insurance solutions locally and around the world to help Canadian companies of any size respond to international business opportunities. As a profitable Crown corporation that operates on commercial principles, EDC works together with private and public sector financial institutions to create greater capacity for Canadian companies to engage in trade and investment. For more information about EDC please visit www.edc.ca.

The Standby LOC is considered to be a "related party transaction" as that term is defined in Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"), but a formal valuation of the Standby LOC is not required and the Standby LOC is exempt from the minority approval requirements of MI 61-101. A material change report in respect of the Standby LOC will be filed less than 21 days before the closing of the transaction, which Amerigo considers to be reasonable and necessary given the fact that the Standby LOC will close contemporaneously with the Bank Facility. Management believes it is unlikely MVC will draw down funds from the Standby LOC.

All amounts in this press release are in US dollars.

_

Amerigo Resources Ltd. produces copper and molybdenum under a long term partnership with the world's largest copper producer, Codelco, by means of processing fresh and old tailings from the world's largest underground copper mine, El Teniente near Santiago, Chile. Tel: (604) 681-2802; Fax: (604) 682-

2802; Web: www.amerigoresources.com; Listing: ARG:TSX

For further information, please contact:

Dr. Klaus Zeitler, Chairman & CEO (604) 218-7013

Amerigo Resources Ltd. (604) 697-6201

Certain of the information and statements contained herein that are not historical facts constitute "forward-looking information" within the meaning of the Securities Act (British Columbia), Securities Act (Ontario) and the Securities Act (Alberta) ("Forward-Looking Information"). Forward-Looking Information is often, but not always, identified by the use of words such as "expect", "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend"; statements that an event or result is "due" on or "may", "will", "should", "could", or might" occur or be achieved; and, other similar expressions. More specifically, Forward-Looking Information contained herein includes, without limitation, information concerning the agreement for the purchase by MVC of the processing rights for the Cauquenes tailings deposit, extending the contract for the processing of Fresh Tailings to 2037 and consolidating all contracts between MVC and Codelco's El Teniente Division ("DET") (the "Master Agreement"), completion of and draw down of funds from the Bank Facility, and completion of and draw down of funds, if required, from the support agreement with DET and the Standby LOC, completion of construction of the planned expansion of MVC's operations required for the processing of old tailings from the historic Cauquenes tailings deposit, including the first and subsequent phases of such expansion (the "Cauquenes Expansion"), future tailings production volumes and the Company's copper and molybdenum production, all of which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such Forward-Looking Information including, without limitation, material factors and assumptions relating to, and risks and uncertainties associated with, the performance of the Master Agreement, the receipt of adequate debt financing required for the Cauquenes Expansion, the successful completion of the Cauquenes Expansion, the continued supply of fresh tailings from El Teniente and successful extraction of historic tailings from the Cauquenes and Colihues tailings deposits, the achievement and maintenance of planned production rates, the evolving legal and political policies of Chile, the volatility in the Chilean economy, military unrest or terrorist actions, metal price fluctuations, governmental relations, the availability of financing for activities when required and on acceptable terms, the estimation of mineral resources and reserves, current and future environmental and regulatory requirements, the availability and timely receipt of permits, approvals and licenses, industrial or environmental accidents, equipment breakdowns, availability of and competition for future mineral acquisition opportunities, availability and cost of insurance, labour disputes, land claims, the inherent uncertainty of production and cost estimates, currency fluctuations, expectations and beliefs of management and other risks and uncertainties, including those described under Risk Factors in the Company's Annual Information Form and in Management's Discussion and Analysis in the Company's financial statements. Such Forward-Looking Information is based upon the Company's assumptions regarding global and Chilean economic, political and market conditions and the price of metals, including copper and molybdenum, and future tailings production volumes and the Company's copper and molybdenum production, including estimated production increases and cost reductions expected to result from the Cauquenes Expansion. Among the factors that have a direct bearing on the Company's future results of operations and financial conditions are changes in project parameters as plans continue to be refined, financing and construction of, and estimated production increases and cost reductions expected to result from, the Cauquenes Expansion, interruptions in the supply of fresh tailings from El Teniente, delays in the extraction of historic tailings from the Colihues and Cauquenes tailings deposits, a change in government policies, competition, currency fluctuations and restrictions and technological changes, among other things. Should one or more of any of the aforementioned risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from any conclusions, forecasts or projections described in the Forward-Looking Information. Accordingly, readers are advised not to place undue reliance on Forward-Looking Information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise Forward-Looking Information, whether as a result of new information, future events or otherwise.

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Amerigo Resources Ltd

PRODUCER
CODE : ARG.TO
ISIN : CA03074G1090
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Amerigo Res. is a copper and molybdenum producing company based in Canada.

Its main asset in production is MINERA VALLE CENTRAL in Chile.

Amerigo Res. is listed in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 282.5 millions as of today (US$ 225.8 millions, € 197.8 millions).

Its stock quote reached its lowest recent point on February 21, 2003 at CA$ 0.08, and its highest recent level on April 27, 2007 at CA$ 2.77.

Amerigo Res. has 175 440 000 shares outstanding.

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Financings of Amerigo Resources Ltd
3/26/2015Closes Bank Financing for Cauquenes Expansion
3/19/2015Secures Cauquenes Bank Financing Without Dilution to Shareho...
2/14/2009Closing of Private Placement
2/7/2009Non-brokered Private Placement
8/28/2008Acquisition of Common Shares and Warrants of Los Andes Coppe...
Nominations of Amerigo Resources Ltd
6/5/2012Pleased to Announce New Appointments
Financials of Amerigo Resources Ltd
8/6/2013Announces Q2-2013 Financial Results
5/9/2013Announces Q1-2013 Financial Results
11/8/2012Announces Q3-2012 Financial Results
8/3/2012Announces Q2-2012 Financial Results
5/7/2012Announces Q1-2012 Financial Results
3/5/2012Announces 2011 Financial Results
8/11/2011Announces Q2-2011 Financial Results
6/14/2011Announces Q1-2011 Financial Results
7/28/2008Q2-2008 Financial Results
Project news of Amerigo Resources Ltd
10/15/2013Announces Q3-2013 Production Results
7/12/2013Announces Q2-2013 Copper Production Results
7/12/2013Announces Q2-2013 Copper Production Results
4/15/2013Announces Q1-2013 Copper Production Results
1/16/2013Q4-2012 and Full Year Production Results Exceed Guidance
7/17/2012Announces Q2-2012 Production Results
4/18/2012Announces Record Q1-2012 Copper Production Results
1/27/2012Announces Q4 2011 Production Results and Provides 2012 Produ...
7/21/2011Announces Q2 2011 Production Results
6/7/2011Provides Production Update
5/5/2011Announces Record Q1 2011 Production Results
1/30/2009 Q4 2008 Production Results
7/15/2008Announces Q2 2008 Production Results Copper Production 7.08M...
4/21/2008Announces Q1 2008 Production Results
Corporate news of Amerigo Resources Ltd
5/3/2016Amerigo Announces Results of AGM
4/14/2016Amerigo Announces 2016 First Quarter Production Results
11/4/2015Amerigo Announces Q3-2015 Financial Results
10/20/2015Amerigo Announces Q3-2015 Production Results
9/29/2015Amerigo Announces Management and Board Changes
9/24/2015Amerigo Announces Successful Start-up of Phase 1 of Cauquene...
8/12/2015Amerigo Announces Q2-2015 Financial Results
7/22/2015Amerigo Announces Results of AGM
7/17/2015Amerigo Announces Q2-2015 Production Results
4/17/2015Amerigo Announces Q1-2015 Production Results
4/13/2015Amerigo Announces Appointment of Alberto Salas as President ...
3/19/2015Amerigo Secures Cauquenes Bank Financing Without Dilution to...
2/23/2015Amerigo Announces 2014 Financial Results
2/5/2015Amerigo Announces Q4-2014 and Full Year Production Results
11/6/2014Amerigo Announces Q3-2014 Financial Results
10/16/2014Amerigo Announces Q3-2014 Production Results
8/7/2014Amerigo Announces Q2-2014 Financial Results
7/18/2014Amerigo Announces Q2-2014 Production Results
7/14/2014Amerigo Announces Receipt of Environmental Approval for Cauq...
5/8/2014Amerigo Announces Q1-2014 Financial Results
4/24/2014Amerigo Announces Filing of NI 43-101 Technical Report
4/22/2014Amerigo and Codelco/El Teniente Sign Agreement Extending Tai...
10/30/2013Executes Mandate Agreement With BBVA to Arrange Project Debt...
9/30/2013Announces Management Changes
7/22/2013Announces Cauquenes Approval and Contract Extension to 2037
1/24/2013Announces 2013 Operations and Capital Guidance
10/16/2012Reports Strong Q3-2012 Production Results: Year to Date Copp...
5/26/2011Announces Dates for Release of Q1 2011 Results and Investor ...
3/28/2011Declares Semi-Annual Dividend
3/1/2010Update on Chilean Earthquake
12/29/2008New Debt Facilities and Cost Reductions
12/16/2008Announces Shareholder Rights Plan
11/7/2008Cash flow from operations of US$7.6M in Q3-2008
7/15/2008on Amerigo Q2 Power Costs
7/7/2008Announces Release of Q2 2008 Results
5/7/2008Q1 08 Results
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