/NOT FOR DISTRIBUTION OR DISSEMINATION IN THE UNITED STATES/
TORONTO, Oct. 31 /CNW/ - South American Gold and Copper Company Limited
(the "Company") (TSX: SAG) announced that it has received notice from Anglo
American Norte S.A. that it has terminated its Letter of Understanding (LOU)
dated March 12, 2007, on the porphyry copper deposit at Pimenton and as a
consequence, does not wish to proceed with negotiations on the Joint Venture
Option Agreement on the property.
Anglo American plc, the parent of Anglo American Norte S.A., announced in
its press release dated October 23, 2008, "The current volatility and
uncertainty in global markets, coupled with the slowdown in the world's major
economies, has had a significant impact on commodity prices. Against this
economic background, Anglo American is conducting a review of its project
pipeline to assess capital expenditure profiles on a project by project basis,
as well as intensively driving its asset optimisation programme and related
cost discipline across the businesses."
David Thomson, Executive Vice President and Director of Exploration and a
Director of the Company stated, "We are pleased to have the Pimenton porphyry
project back in our own hands. We entered into the LOU with Anglo American
Norte S.A. at a time when we were not in a position to move the project
forward on our own. We have gained additional and valuable information on the
Pimenton porphyry deposit through the work of both Anglo American Norte S.A.
and Rio Tinto Mining and Exploration Ltd. We will continue exploration of the
project from the cash flow expected to be generated by our Pimenton
gold/copper mine and do not rule out the possibility of entering into Joint
Venture discussions on the project in the future."
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 or the Pimenton porphyry deposit, 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: Patrick Esnouf, President, David Thomson, EVP,
E-Mail: email@example.com, Telephone: 56-2-264-2295, Website: www.sagc.com