South American Gold and Copper Company Limited Announces Closing of Private Placement



    /NOT TO BE DISTRIBUTED OR DISSEMINATED IN THE U.S./

    TORONTO, March 6 /CNW/ - South American Gold and Copper Company Limited
(TSX: SAG) (the "Company") is pleased to announce that it has completed the
second closing of a previously announced private placement of 20,000,000 units
at a price of CDN $0.04 per unit for aggregate gross proceeds to the Company
of CDN $800,000. Each unit consists of one common share and one common share
purchase warrant of the Company. Each common share purchase warrant entitles
the holder to acquire one common share of the Company at a price of CDN $0.06
for a period of 24 months from the closing date. The common shares and common
share purchase warrants (and the securities issuable upon the exercise
thereof) are subject to resale restrictions under applicable securities
legislation. Pursuant to the private placement, David Thomson and Mario
Hernandez, insiders of the Company, each subscribed for 8,750,000 units.
    The Company will use the gross proceeds from the sale of units for debt
retirement and for general working capital purposes.

    The securities referred to in this press release have not been registered
under the United States Securities Act of 1933, as amended, and may not be
offered or sold in the United States absent registration or any applicable
exemption from the registration requirements. This press release does not
constitute an offer to sell or the solicitation of an offer to buy nor will
there be any sale of such securities in any state or other jurisdiction in
which such offer, solicitation or sale would be unlawful.

    South American Gold and Copper Company Limited is a minerals producing,
exploration and development company with properties and activities currently
focused in Chile.

    FORWARD-LOOKING STATEMENTS: This news release contains certain
"forward-looking statements" within the meaning of Section 21E of the United
States Securities Exchange Act of 1934, as amended. Except for statements of
historical fact relating to the company, certain information contained herein
constitutes forward-looking statements. Forward-looking statements are
frequently characterized by words such as "plan," "expect," "project,"
"intend," "believe," "anticipate", "estimate" and other similar words, or
statements that certain events or conditions "may" or "will" occur.
Forward-looking statements are based on the opinions and estimates of
management at the date the statements are made, and are subject to a variety
of risks and uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the forward-looking
statements. These factors include the inherent risks involved in the
exploration and development of mineral properties, the uncertainties involved
in interpreting drilling results and other ecological data, fluctuating metal
prices, the possibility of project cost overruns or unanticipated costs and
expenses, uncertainties relating to the availability and costs of financing
needed in the future and other factors. The Company undertakes no obligation
to update forward looking statements if circumstances or management's
estimates or opinions should change. The reader is cautioned not to place
undue reliance on forward-looking statements.





For further information:

For further information: Stephen W. Houghton, President and CEO,
Telephone: (212) 751-0083, Website: www.sagc.com


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