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SOUTH AMERICAN GOLD AND COPPER COMPANY LIMITED Registered Office New York Representative Office Not to be distributed or disseminated in the U.S. FOR IMMEDIATE RELEASE March 13, 2007 South American Gold and Copper Company Limited Announces Letter of Understanding with Empresa Minera de Mantos Blancos S.A. a Chilean subsidiary of Anglo American on the Pimenton Porphyry Copper Gold Deposit
Pimenton is located within the Central Porphyry copper belt of Chile in an area of current and intense exploration activities. Stephen W. Houghton, President and Chief Executive Officer, stated that the normal time frame for completing a joint venture agreement under the Chilean legal system can take 90 to 180 days. Therefore, Mantos and the Company have agreed to operate under the terms of the LOU in order to commence an immediate drill program on the Pimenton porphyry deposit before the upcoming winter season in Chile. Mr. Houghton commented further that the LOU is a binding agreement on both Mantos and the Company (the “Parties”). Under the terms of the LOU, Mantos is committed to drill an initial mutually agreed upon drill program on the Pimenton porphyry copper gold deposit consisting of a minimum of 2,000 meters of diamond drilling. Following the successful completion of this drill program, as determined by Mantos, it has been agreed that Mantos will have the option to enter into a formal joint venture agreement with the Company under the terms of the LOU, excluding the current gold mining operations at Pimenton. Under the terms of the LOU, the joint venture agreement would contain a minimum budgeted schedule of drilling by Mantos over a four year time frame, and the completion of a feasibility study on the project within seven years of the date of the LOU, at which time Mantos would earn a 60% interest in the project. More details of the joint venture agreement between the Parties will be announced at such time as and if the joint venture agreement is finalized. Mantos is scheduled to move a diamond drill rig to the Pimenton property in mid-March 2007 for the commencement of initial drilling on the Pimenton Central area, one of several drill targets areas that have been identified at Pimenton. Winter weather conditions will determine if this initial drill program can be completed during the remainder of this exploration season in Chile. Mr. Houghton stated that the Company is very pleased to be working with a company of Anglo American’s stature in the global mining industry as its partner in conducting the exploration and possible future development of the Pimenton porphyry. 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: Certain information contained in this press release constitutes “forward looking statements” within the meaning of securities laws. Forward-looking statements may relate to the future outlook of the Company and anticipated events or results. In particular, statements regarding the Company’s future operating results and economic performance are forward-looking statements. Forward-looking statements are made on management’s belief as well as assumptions made by and information currently available to, management of the Company. While such beliefs and assumptions are considered reasonable by the Company, they are inherently subject to significant business, economic and competitive uncertainties and contingencies or they may prove to be incorrect. Important factors which could cause actual results to differ materially from those projected in the forward-looking statements include fluctuations in the market price of gold, changes in government legislation in the countries in which the Company operates, business opportunities which may be presented to or pursued by the Company, contests over title to properties, general and environmental risks and hazards associated with mining. Many of these issues can affect the Company’s actual results and could cause its actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of the Company. Readers are cautioned that forward-looking statements are not guarantees of future performance, and should not place undue reliance on them. The Company expressly disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statements contained herein to reflect any change in expectations with regard thereto or any changes in events, conditions or circumstances on which any statement is based. This news release was approved by Anglo American. |