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Amerigo
Announces Shareholder Rights Plan
VANCOUVER, BRITISH COLUMBIA � December 16/CNW/ - Amerigo Resources Ltd. (TSX:ARG,
"Amerigo" or the "Company") announced
today that the Company's board of directors has approved a Shareholder Rights
Plan (the 'Rights Plan') for the Company.
Due to the current volatility of financial markets,
Amerigo's board of directors believes that the Company's share price is
significantly below its asset value per share. As a result, the board has
approved the Rights Plan to ensure the fair treatment of all shareholders in
the event of any take-over offer for the Company's common shares. The Rights
Plan is not intended to prevent take-over bids that treat shareholders fairly
and offer fair value, and permits bids that meet certain requirements
intended to protect the interests of all shareholders.
Amerigo is not adopting the Rights Plan in response
to, or in anticipation of, any specific take-over bid or proposal to acquire
control of the Company. The Rights Plan is similar to plans adopted by other
Canadian companies, has been conditionally approved by the Toronto Stock
Exchange, and is subject to ratification by the Company's shareholders at a
meeting of shareholders within six months of its official implementation
date. If ratified by the Company's shareholders, the Rights Plan will expire
at the termination of the Company's annual meeting in 2011, unless extended
upon reconfirmation by shareholders at that meeting. The Rights Plan must
then be reconfirmed by shareholders at every third annual meeting of the
Company.
Amerigo Resources Ltd. is a Canadian 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:
Dr. Klaus Zeitler, President (604) 681-2802, (604) 218-7013
Amerigo Resources Ltd.
Certain of
the information and statements contained herein that are not historical
facts, constitute �forward-looking information� within the meaning of the
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 �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 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 supply of tailings from El Teniente and
extraction of tailings from the Colihues tailings impoundment, 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, favourable
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 dated
March 31, 2008, and in each subsequent Management�s Discussion and Analysis.
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.. 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, interruptions in the supply of fresh tailings
from El Teniente, further delays in the extraction of tailings from the
Colihues tailings impoundment, 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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