/NOT TO BE DISTRIBUTED OR DISSEMINATED IN THE UNITED STATES/
TORONTO, June 11 /CNW/ - South American Gold and Copper Company Limited
(the "Company") (TSX: SAG) reported that a Company controlled by Mr. David R.
S. Thomson, EVP and Director of Exploration and a Director of the Company has
reported that it has been issued 2,315,223 common shares of the Company in
lieu of interest payments, totalling US $69,293 or Cdn $77,755 due for the
period of March 31, 2008 to March 31, 2009 on the US $1,500,000 Convertible
Debentures issued to it in 2006. In addition, it has elected to convert the US
$1,500,000 Convertible Debenture issued to it in 2006 at a conversion price of
US $0.0569 or Cdn $0.0639 or into 26,351,520 common shares of the Company. In
addition, Mr. Thomson's Company has converted US $240,988 of leases secured by
Convertible Debentures into 5,862,731 common shares of the Company at US
$0.041 or Cdn $0.046 per share.
In addition, a Company controlled by Mr. Mario Hernandez, EVP and
Director of Claims and Administration and a Director of the Company has been
issued 154,348 common shares of the Company in lieu of interest payments
totalling US $4,620 or Cdn $5,402 due for the period of March 31, 2008 to
March 31, 2009 on the US $100,000 Convertible Debentures issued to it in 2006.
In addition, it has elected to convert the US $100,000 Convertible Debentures
issued to it in 2006 at a conversion price of US $0.0569 or Cdn $0.0639 per
share or into 1,756,768 common shares of the Company. Mr. Hernandez's Company
has also converted US $263,034 of leases secured by a Convertible Debenture
into 6,399,064 common shares at a conversion price of US $0.041 or Cdn $0.046
Mr. Thomson now holds through a Company controlled by him 87,656,426
common shares or 11.06% of the Company and Mr. Hernandez now holds through a
Company controlled by him 90,312,120 common shares or 11.39% of the Company's
792,440,170 outstanding shares.
The Company views these conversions at prices above the Company's current
stock price as highly favourable as it eliminates more than US $2,100,000 of
indebtedness and shows a strong conviction by Mr. Thomson and Mr. Hernandez in
the future of the Company.
The Company also announced that its wholly owned subsidiary, Compania
Minera Pimenton has reached an agreement with the Overseas Private Investment
Corporation (OPIC) to accelerate its loan payment to a quarterly versus semi
annual repayment schedule which is expected to eliminate this indebtedness
totalling US $1,555,000 by June 15, 2010.
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, CEO, David R. S. Thomson,
EVP, E-Mail: email@example.com, Telephone: 56-2-264-2295, Website: