South American Gold and Copper Company Limited Announces Issuance of Convertible Debentures



    TORONTO, Oct. 8 /CNW/ - South American Gold and Copper Company Limited
(the "Company") (TSX: SAG) reported that its wholly owned subsidiary, Compania
Minera Pimenton will issue Convertible Debentures secured by equipment leases
totalling Cdn $706,808, subject to the Toronto Stock Exchange final approval.
    The Convertible Debentures are non interest bearing and are convertible
at Cdn $0.05 per share or for up to a total of 14,136,160 shares. Under the
terms of the Convertible Debentures, the net amount (total lease payments less
lease payments made less the balance of interest due on the remaining lease
payments) shall be convertible into common shares of the Company. The total
lease payments are Cdn $17,600 per month. As the lease payments are made by
Compania Minera Pimenton, the amount of the Convertible Debenture is
correspondingly reduced.
    Compania Minera Pimenton may on 30 days notice to the lessors prepay the
net amount due to be paid to the lessor less all remaining interest due under
the leases or the lessor may elect to take the balance of the lease payment
(net of interest on the remaining lease payments) in shares of the Company
within the 30 day notice period.
    The Convertible Debentures will be issued to cover nine equipment leases
used to lease purchase equipment for the Pimenton gold mine on terms not
currently available to Pimenton. Two Directors and Officers of the Company
have made this financing possible which has greatly benefitted the operations
of the Pimenton gold mine.
    South American Gold and Copper Company Limited is a minerals producing,
exploration and development company with properties and activities currently
focused in Chile.

    "Cautionary Statement Regarding Forward-Looking Information. Except for
statements of historical fact, all statements and information in this press
release, including without limitation, statements and information regarding
the Pimenton gold mine, forecasted production, future plans, financing
requirements, objectives and results constitute forward-looking information
within the meaning of applicable Canadian securities legislation, which
involve risks, uncertainties and assumptions, many of which are beyond our
control. All such forward-looking information is based on certain assumptions
and analyses made by us in light of our experience and perception of
historical trends, current conditions and expected future developments, as
well as other factors we believe are appropriate in the circumstances. Actual
results, performance or achievements could differ materially from those
expressed in, or implied by, such forward looking information and,
accordingly, no assurance can be given that any of the events anticipated by
the forward-looking information will transpire or occur, or if any of them do
so, what benefits will be derived there from. Except as required by law, South
American Gold and Copper Company Limited and its subsidiaries, expressly
disclaim any intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events or
otherwise.
    The forward-looking information contained herein is expressly qualified
by this cautionary statement."




For further information:

For further information: Stephen W. Houghton, Chief Executive Officer,
E-Mail: sagc@sagchile.cl, Telephone: 56-2-264-2295, Website: www.sagc.com


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