Registered Office New York Representative Office
SUITE 800, PURDY’S WHARF 420 MADISON AVENUE
1999 UPPER WATER STREET, TOWER 1 NEW YORK, NEW YORK 10017
HALIFAX, NOVA SCOTIA B3J 2X2
For further information, contact:
Stephen W. Houghton,
President and CEO
Telephone: (212) 751-0083
Thomas K. Sills,
Chief Operating Officer
Telephone: (416) 527-0475
Michael Churchill,
EVP
Telephone: (416) 678-0928
Website: www.sagc.com
Not to be distributed or disseminated in the U.S.
FOR IMMEDIATE RELEASE – June 8, 2007
South American Gold and Copper Company Limited, Michael Churchill.
Tom Sills and Charles Gryba Announce a Planned Management and Board
Transition.
Toronto, Ontario, Canada 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
prices.
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 Chile.
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 its development.”
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 momentum.”
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