Amerigo Announces Normal Course Issuer Bid Up to 10.75 million shares could be retired during the course of the issuer bid Announcement Confirms Amerigo’s Corporate Focus on Shareholder Returns _______________________________________________________________________________________________________
November 30, 2021
N.R. 2021-19
Amerigo Announces Normal Course Issuer Bid
Up to 10.75 million shares could be retired during the course of the issuer bid
Announcement Confirms Amerigo’s Corporate Focus on Shareholder Returns
_______________________________________________________________________________________________________
VANCOUVER, BRITISH COLUMBIA – November 30, 2021/Amerigo Resources Ltd. (TSX: ARG;
ARREF: OTC) (“Amerigo” or the “Company”) is pleased to announce that the Toronto Stock Exchange (the
“TSX”) has accepted Amerigo’s application for a normal course issuer bid (the “NCIB”).
Under the NCIB Amerigo may purchase up to 10,750,000 common shares (representing 6.14% of its
174,936,288 common shares outstanding as at November 29, 2021) over a period of twelve months
commencing on December 2, 2021. The NCIB will terminate no later than December 1, 2022.
“Amerigo’s Board of Directors believes that the purchase of common shares of the Company continues to
represent a highly accretive use of capital”, said Aurora Davidson, Amerigo’s President and CEO. “We are
pleased to have this normal course issuer bid now in place, having recently completed a substantial issuer
bid where Amerigo retired more than 7.1 million common shares.”
Under the NCIB, common shares may be purchased in open market transactions on the TSX at the
prevailing market price at the time of such transaction.
Pursuant to the rules of the TSX, the total number of common shares that Amerigo is permitted to purchase
is subject to a daily purchase limit of 86,625 comm on shares, which represents 25% of the average daily
trading volume of 346,502 common shares on the TSX for the six-month period ended October 31, 2021.
However, Amerigo may make one block purchase per calendar week which exceeds the daily purchase
restriction.
All common shares purchased under the NCIB will be cancelled.
The actual number of common shares purchased pursuant to the NCIB and the timing of such purchases
will be determined by Amerigo. There cannot be any assurance as to how many common shares, if any,
will ultimately be acquired by the Company.
Pursuant to the recently completed substantial issuer bid, Amerigo acquired 7,116,345 common shares at
a price of Cdn$1.30 per share. The Company originally sought to purchase common shares having an
aggregate purchase price of Cdn$25 million by way of a modified Dutch auction for prices ranging between
Cdn$1.18 and Cdn$1.30 per share.
About Amerigo
Amerigo Resources Ltd. is an innovative copper producer with a long-term relationship with Corporación
Nacional del Cobre de Chile (“Codelco”), the world’s largest copper producer.
Amerigo produces copper concentrate and molybdenum co ncentrate as a by-product at the Minera Valle
Central (“MVC”) operation in Chile by processing fresh and historic tailings from Codelco’s El Teniente mine,
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the world's largest underground copper mine. Tel: (604) 681-2802; Fax: (604) 682-2802; Web:
www.amerigoresources.com; Listing: ARG: TSX.
For further information, please contact:
Forward-Looking Information
Forward-looking information (“ forward-looking statements ”) is included in this news release. These
forward-looking statements are identified by the use of terms such as “anticipate”, “believe”, “could”,
“estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “project”, “will”, “would”, and “should” and similar
terms and phrases, including references to assumptions. Such statements may involve but are not limited
to, Amerigo’s plans, objectives, expectations and intentions, including Amerigo’s objectives and
expectations regarding the Offer and the size, timing and terms and conditions of the Offer, the anticipated
mailing date of the Offer Documents and commencement date of the Offer, the expectation that the
Company will reinstate the declaration and payment of dividends in the fourth quarter of 2021, and other
comments with respect to strategies, expectations, planned operations or future actions.
These forward-looking statements involve known and unknown risks, uncertainties and other factors that
may cause actual results or events to differ materially from those anticipated in such statements. Inherent
in forward-looking statements are risks and uncertainties beyond Amerigo’s ability to predict or control,
including risks that may affect Amerigo’s operating or capital plans; risks generally encountered in the
permitting and development of mineral projects such as unusual or unexpected geological formations,
negotiations with government and other third parties, unanticipated metallurgical difficulties, delays
associated with permits, approvals and permit appeals, ground control problems, adverse weather
conditions, process upsets and equipment malfunctions; risks associated with labour disturbances and
availability of skilled labour and management; risks rela ted to the potential impact of global or national
health concerns, including COVID-19, and the inability of employees to access sufficient healthcare;
government or regulatory actions or inactions; fluctuat ions in the market prices of Amerigo’s principal
commodities, which are cyclical and subject to substantial price fluctuations; risks created through
competition for mining projects and properties; risks associated with lack of access to markets; risks
associated with availability of and Amerigo’s ability to obtain both tailings from Codelco’s Division El
Teniente’s current production and historic tailings from tailings deposits; risks with respect to the ability of
Amerigo to draw down funds from lines of credit and the availability of and ability of Amerigo to obtain
adequate funding on reasonable terms for expansions and acquisitions; mine plan estimates; risks posed
by fluctuations in exchange rates and interest rates, as well as general economic conditions; risks
associated with environmental compliance and changes in environmental legislation and regulation; risks
associated with Amerigo’s dependence on third parties for the provision of critical services; risks associated
with non-performance by contractual counterparties; title risks; social and political risks associated with
operations in foreign countries; risks of changes in laws affecting Amerigo’s operations or their
interpretation, including foreign exchange controls; and risks associated with tax reassessments and legal
proceedings. Notwithstanding the efforts of Amerigo and MVC, there can be no guarantee that Amerigo’s
or MVC’s staff will not contract COVID-19 or that Am erigo’s and MVC’s measures to protect staff from
COVID-19 will be effective. Many of these risks and uncertainties apply not only to Amerigo and its
operations, but also to Codelco and its operations. Codelco’s ongoing mining operations provide a
Aurora Davidson Graham Farrell
President and CEO Investor Relations
(604) 697 6207 (416) 842-9003
[email protected] [email protected]
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significant portion of the materials Amerigo processes and its resulting metals production, therefore these
risks and uncertainties may also affect their operations and in turn have a material effect on Amerigo.
Actual results and developments are likely to differ, and may differ materially, from those expressed or
implied by the forward-looking statements contained in this news release. Such statements are based on
several assumptions which may prove to be incorrect, including, but not limited to, assumptions about:
• general business and economic conditions;
• interest rates;
• changes in commodity and power prices;
• acts of foreign governments and the outcome of legal proceedings;
• the supply and demand for, deliveries of, and the level and volatility of prices of copper and other
commodities and products used in Amerigo’s operations;
• the ongoing supply of material for processing from Codelco’s current mining operations;
• the ability of Amerigo to profitably extract and process material from the Cauquenes tailings deposit;
• the timing of the receipt of and retention of permits and other regulatory and governmental approvals;
• Amerigo’s costs of production and its production and productivity levels, as well as those of
Amerigo’s competitors;
• changes in credit market conditions and conditions in financial markets generally;
• Amerigo’s ability to procure equipment and operating supplies in sufficient quantities and on a timely
basis;
• the availability of qualified employees and contractors for Amerigo’s operations;
• Amerigo’s ability to attract and retain skilled staff;
• the satisfactory negotiation of collective agreements with unionized employees;
• the impact of changes in foreign exchange rates and capital repatriation on Amerigo’s costs and
results;
• costs of closure of various operations;
• market competition;
• tax benefits and tax rates;
• the outcome of Amerigo’s copper concentrate sales and treatment and refining charge negotiations;
• the resolution of environmental and other proceedings or disputes;
• the future supply of reasonably priced power;
• rainfall in the vicinity of MVC continuing to trend towards normal levels;
• average recoveries for fresh tailings and Cauquenes tailings;
• Amerigo’s ability to obtain, comply with and renew permits and licenses in a timely manner; and
• Amerigo’s ongoing relations with its employees and entities with which it does business.
Future production levels and cost estimates assume there are no adverse mining or other events which
significantly affect budgeted production levels. Although Amerigo believes that these assumptions were
reasonable when made, because these assumptions are inherently subject to significant uncertainties and
contingencies which are difficult or impossible to predict and are beyond Amerigo’s control, Amerigo cannot
assure that it will achieve or accomplish the expectations, beliefs or projections described in the forward-
looking statements.
Amerigo cautions you that the foregoing list of important factors and assumptions is not exhaustive. Other
events or circumstances could cause Amerigo’s actual results to differ materially from those estimated or
projected and expressed in, or implied by, its forw ard-looking statements. You should also carefully
consider the matters discussed under Risk Factors in Amerigo’s Annual Information Form. The forward-
looking statements contained herein speak only as of the date of this news release and except as required
by law, Amerigo undertakes no obligation to update publicly or otherwise revise any forward-looking
statements or the foregoing list of factors, whether as a result of new information or future events or
otherwise.