/NOT TO BE DISTRIBUTED OR DISSEMINATED IN THE UNITED STATES/
TORONTO, Aug. 16 /CNW/ - South American Gold and Copper Company (the "Company) (TSX-SAG) reported its financial results for the three months and nine months period ended June 30, 2010 compared to the corresponding fiscal periods a year ago.
Revenues for the three months and nine months period ended 2010 were US $2,714,000 and US $6,914,000, respectively, compared to US $2,890,000 and US $8,527,000 for the same periods a year ago. The decline of US $176,000 and US $1,613,000 of the three months and nine months, respectfully, was primarily due to the partial mine closure which badly affected production from July 2009 through to December 2009 and the poor availability of mine equipment which impacted the results through to June 30, 2010. The mine equipment problems have been substantially resolved and production in July, 2010 was on budget.
On the expense side, the main items effecting the three months and nine months ended June 30, 2010 was US $903,000 of stock based compensation related to the common stock options approved at the Company's Board of Directors Meeting in April, 2010 and the decision to write off the Company's mine property costs (claims costs) totalling $1,133,000 plus US $108,000 of exploration costs in preparation of the guideline called for under IFRS accounting standards. Before amortization and depreciation, stock based compensation and mine property costs and exploration costs, the Company's actual cash loss for the three months period ended June 30, 2010 was $254,000.
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.
SOURCE Cerro Grande Mining Corporation
For further information: For further information: SOUTH AMERICAN GOLD AND COPPER COMPANY LIMITED, Registered Office: 79 WELLINGTON STREET WEST, SUITE 2300, TORONTO, ONTARIO, M5K 1H1, CANADA; Toronto Office: 67 Yonge Street, Of. 1201, Toronto, Ontario, M5J 1J8, CANADA; Santiago Office: LA CONCEPCION 266, Of. 704, PROVIDENCIA, SANTIAGO, CHILE, Telephone: 56-2-264-2295; Stephen W. Houghton, CEO, E-Mail: firstname.lastname@example.org, Telephone : 56-2-264-2295, Website: www.sagc.com