/NOT FOR DISTRIBUTION IN THE UNITED STATES OF AMERICA/
TORONTO, June 8 /CNW/ - South American Gold and Copper Company Limited
("the Company" or "SAGC") (TSX-SAG) wish to announce the resignations of Tom
Sills and Michael Churchill from their positions as executives of the Company,
and the resignations of Michael Churchill and Charles Gryba from the board of
directors, effective as of today. In addition, the consulting arrangements
with Churchill, Sills and PM Holdings Ltd. have been mutually terminated.
Stephen W. Houghton, CEO, commented "Mr. Sills and Mr. Churchill were
brought in as a transition team to assist in the refinancing and refocusing of
the Company. During the course of their involvement over the last six months
the Company has been able to accomplish the following milestones:
1. Cdn $1,566,240 in new equity was raised at or above the then market
2. Cdn $824,000 of debt has been converted to equity.
3. US $1,400,000 has been advanced to the Company by an Officer and
Director and will be converted to equity subject to TSX approval.
4. Outstanding insurance claims were settled in SAGC's favor in the
amount of approximately Cdn $600,000.
5. A LOU with a subsidiary of Anglo American for the development of the
Pimenton porphyry copper deposit was signed.
6. Hiring of a new President with significant knowledge of mining in
7. Transitioned the board of directors to a board consisting of a
majority of independent members.
Mr. Sills and Mr. Churchill commented "We feel that we have
constructively engaged the incumbent management and board towards focusing the
Company on achieving realistic and deliverable milestones on its portfolio of
assets with a view towards creating shareholder value. We feel it is now time
to pass the baton to the incoming President and new board members who now have
a more solid base by which to move the Company on to the next stage in its
development. We look forward to following new management and the independently
governed board's performance in the future."
Upon stepping down from the Company's board Mr. Churchill and Mr. Gryba
commented: "Unfortunately due to other business obligations we will not be
able to devote as much time to SAGC as we have in the past. Our original roles
were to assist SAGC through a very difficult period which has since passed and
we feel that SAGC is now on to a new stage in its corporate life. We wish the
incoming board members all the best as they guide SAGC to the next chapter in
Patrick Esnouf, incoming President of SAGC commented "I'm very excited by
the possibilities that exist with the portfolio of assets that the Company has
on its balance sheet. The Company has accomplished a lot in the last six
months and I look forward to the challenges of continuing the forward
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, Chief Executive Officer,
Telephone: (212) 751-0083, Website: www.sagc.com; Michael Churchill, Tom
Sills, Charles Gryba, 401 Bay Street, Suite 2705, Toronto, ON, M5H 2Y4,
Telephone: (416) 363-1124 ext 205