ARG Amerigo Resources Ltd

Amerigo Resources Ltd. (TSX:ARG) ("Amerigo" or the "Company") is pleased to
announce that its wholly owned Chilean subsidiary, Minera Valle Central S.A.
("MVC"), has executed a project financing mandate agreement (the "Mandate
Agreement") with BBVA Chile and BBVA Securities Inc. (collectively "BBVA"). 


The Mandate Agreement sets out an exclusive arrangement with BBVA describing the
activities needed to arrange a loan facility (the "Loan Facility") for the
planned expansion of MVC's operations required for the processing of old
tailings from the historic Cauquenes tailings deposit (the "Cauquenes
Expansion"). BBVA has agreed to seek credit approval to provide up to 50% of the
amount of the Loan Facility, and to act as mandated lead arranger and fronting
hedge bank.


Total estimated cost of the Cauquenes Expansion is US$140 million, to be
financed by a combination of funding from the Loan Facility and internal cash
flow. The Mandate Agreement contemplates the completion of technical,
environmental, market, insurance, fiscal and legal due diligence and is subject
to customary representations, warranties and conditions precedent, including
agreement on final terms and conditions and requisite documentation for the
loan, completion of due diligence and procurement of credit approvals.


Indicated terms of the Loan Facility and a value added tax facility have been
received and are expected to be finalized on completion of the bank's due
diligence which is now underway. 


Dr. Klaus Zeitler, Amerigo's Chairman and CEO stated "The signing of the Mandate
Agreement represents a significant step forward towards completing project
financing for the construction of the Cauquenes Expansion. The high quality and
strong economics of this project, combined with its favourable location in
Chile, make it an attractive candidate for financing from the international
banking community. This is a major milestone for Amerigo as we continue to make
progress in the permitting process and the finalization of the Cauquenes formal
agreement, both of which we believe will be completed in the coming months."


Amerigo Resources Ltd. produces copper and molybdenum under a long term
partnership with the world's largest copper producer, Codelco, by means of
processing fresh and old tailings from the world's largest underground copper
mine, El Teniente near Santiago, Chile. Tel: (604) 681-2802; Fax: (604)
682-2802; Web: www.amerigoresources.com; Listing: ARG:TSX


Certain of the information and statements contained herein that are not
historical facts, constitute "forward-looking information" within the meaning of
the Securities Act (British Columbia), Securities Act (Ontario) and the
Securities Act (Alberta) ("Forward-Looking Information"). Forward-Looking
Information is often, but not always, identified by the use of words such as
"seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend";
statements that an event or result is "due" on or "may", "will", "should",
"could", or might" occur or be achieved; and, other similar expressions. More
specifically, Forward-Looking Information contained herein includes, without
limitation, information concerning future tailings production volumes and the
Company's copper and molybdenum production, all of which involve known and
unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company, or industry results, to be
materially different from any future results, performance or achievements
expressed or implied by such Forward-Looking Information; including, without
limitation, material factors and assumptions relating to, and risks and
uncertainties associated with, the supply of tailings from El Teniente and
extraction of tailings from the Colihues tailings impoundment, the achievement
and maintenance of planned production rates, the evolving legal and political
policies of Chile, the volatility in the Chilean economy, military unrest or
terrorist actions, metal price fluctuations, governmental relations, the
availability of financing for activities when required and on acceptable terms,
the estimation of mineral resources and reserves, current and future
environmental and regulatory requirements, the availability and timely receipt
of permits, approvals and licenses, industrial or environmental accidents,
equipment breakdowns, availability of and competition for future mineral
acquisition opportunities, availability and cost of insurance, labour disputes,
land claims, the inherent uncertainty of production and cost estimates, currency
fluctuations, expectations and beliefs of management and other risks and
uncertainties, including those described under Risk Factors in the Company's
Annual Information Form and in Management's Discussion and Analysis in the
Company's financial statements. 


Such Forward-Looking Information is based upon the Company's assumptions
regarding global and Chilean economic, political and market conditions and the
price of metals, including copper and molybdenum, and future tailings production
volumes and the Company's copper and molybdenum production. Among the factors
that have a direct bearing on the Company's future results of operations and
financial conditions are changes in project parameters as plans continue to be
refined, interruptions in the supply of fresh tailings from El Teniente, further
delays in the extraction of tailings from the Colihues tailings impoundment, a
change in government policies, competition, currency fluctuations and
restrictions and technological changes, among other things. Should one or more
of any of the aforementioned risks and uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary materially from
any conclusions, forecasts or projections described in the Forward-Looking
Information. Accordingly, readers are advised not to place undue reliance on
Forward-Looking Information. Except as required under applicable securities
legislation, the Company undertakes no obligation to publicly update or revise
Forward-Looking Information, whether as a result of new information, future
events or otherwise


FOR FURTHER INFORMATION PLEASE CONTACT: 
Amerigo Resources Ltd.
Dr. Klaus Zeitler
Chairman & CEO
(604) 218-7013


Amerigo Resources Ltd.
(604) 697-6201
www.amerigoresources.com

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