Santiago Office La Concepcion No. 266, Of. 701 PROVIDENCIA, SANTIAGO, CHILE Telephone: 56 2 264 2295 Fax: 56 2 264 2309	Registered Office: SUITE 800, PURDY'S WHARF 1959 UPPER WATER STREET, TOWER 1 HALIFAX, NOVA SCOTIA B3J 2X2
	New York Representative Office: 420 MADISON AVENUE, SUITE 901 NEW YORK, NEW YORK 10017-1107 Telephone: (212) 751-0083 Fax: (212) 751-0083 Website: http://www.sagc.com

Toronto,Ontario - September 14, 2000

 

FOR IMMEDIATE RELEASE

South American Gold and Copper Company Limited Announces Agreement to Acquire 100% Ownership Position in Compañía Cal Norte and the Cal Norte Lime Project and Receipt of All Environmental Approvals on the Project

Toronto, Ontario, Canada - South American Gold and Copper Company Limited ("SAGC") (Toronto Stock Exchange Symbol "SAG"), is pleased to announce that it has reached an agreement to acquire the remaining 40% minority interest in Compañía Cal Norte, subject to receipt of required regulatory approvals. The purchase of the 40% minority interest will increase SAGC’s ownership in Compañía Cal Norte and the Cal Norte project and limestone mining properties to 100%.

Compañía Cal Norte has completed a bankable feasibility study on the Cal Norte lime project and has recently received all requisite environmental permits and approvals for its planned 150 ton per day capacity metallurgical grade lime (CaO) processing facility which will be located at the site of Cal Norte’s high grade limestone mining properties. Cal Norte has received executed contracts for a part of the lime processing facility’s annual production capacity of 51,000 tons per year of CaO.

The purchase price for the 40% minority interest in Cal Norte will consist primarily of a combination of cash in the amount of up to US $280,000; US $600,000 of Subordinated Notes which will be issued by Compañía Cal Norte on the start-up date of commercial operations of the Cal Norte lime processing facilities and approximately 8,000,000 common shares of SAGC, a part of which will be issued on commencement of commercial operations of Cal Norte.

Stephen W. Houghton, President and CEO, stated that the acquisition of the 40% minority interest in Cal Norte further strengthens and consolidates SAGC’s position and strategy for entry into the growing metallurgical grade lime market in Chile. The purchase of the 40% minority interest will also facilitate financing negotiations currently in progress on the Cal Norte project and is expected to have a favorable impact on SAGC’s revenues and profits when the Cal Norte lime processing facility is placed into operation.

SAGC is a mineral exploration and development company with current focus on industrial mineral projects in Chile. The Company also holds significant interests in several gold projects in Chile. Its common shares are listed on The Toronto Stock Exchange under the symbol SAG.