Amerigo Announces Completion of Normal Course Issuer Bid Over 6% of outstanding shares repurchased over 7 months

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(NewsDirect)

10.75 million shares retired at an average cost per share of Cdn$1.62

Announcement confirms Amerigo’s strong commitment of capital returns to shareholders

Amerigo Resources Ltd. (TSX: ARG; ARREF: OTC) (“Amerigo” or the “Company”) is pleased to announce the completion of the last purchases of its common shares under a normal course issuer bid (“NCIB”) pursuant to which Amerigo purchased for cancellation an aggregate of 10.75 million of its common shares at an average cost of Cdn$1.62.

“We are very pleased to report the completion of this share repurchase program well ahead of the December 1, 2022 termination date. The completion of this NCIB will cancel 6.14% of Amerigo’s outstanding shares and enhances the impact of our return of capital strategy for remaining shareholders”, said Aurora Davidson, President and CEO.

“The NCIB is only one of the tools at our disposal to return capital to shareholders, and its effectiveness was evident during recent market volatility. At an average cost of Cdn$1.62 per share, the annualized yield on these equity purchases was 7.4% before consideration of the potential return from performance/top-up dividends. We believe this first NCIB has been a prudent use of capital for the benefit of Amerigo’s shareholders”, added Ms. Davidson.

Under the NCIB, Amerigo was entitled to purchase up to 10.75 million common shares (representing 6.14% of the common shares outstanding at the start of the NCIB) over a period of twelve months commencing on December 2, 2021 and ending no later than December 1, 2022.

Funds in the aggregate amount of US$13.7 million were used by Amerigo in the NCIB.

Given that Amerigo has already purchased the maximum number of securities permitted by the Toronto Stock Exchange (“TSX”) under a NCIB in a 12-month period, it would only be able to commence another NCIB after December 2, 2022.

The common shares were purchased in open market transactions on the TSX at the prevailing market price at the time of such transactions. Pursuant to the rules of the TSX, the total number of common shares that Amerigo was permitted to purchase was subject to a daily purchase limit of 86,625 common shares, representing 25% of the average daily trading volume of Amerigo’s common shares on the TSX for the six-month period preceding the start of the NCIB. Amerigo was also able to make one block purchase per calendar week.

One of Amerigo’s primary objectives is to return capital to its shareholders. In addition to the recently completed NCIB, Amerigo is currently paying a sustainable quarterly dividend of Cdn$0.03 per share and has announced a “top-up” or performance dividend mechanism, which can be used at any time and in any amount to distribute surplus cash to shareholders.

On completion of the NCIB, Amerigo had 166,017,835 issued and outstanding common shares.

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 concentrate as a by-product at the MVC operation in Chile by processing fresh and historic tailings from Codelco’s El Teniente mine, the world's largest underground copper mine. Tel: (604) 681-2802; Web: www.amerigoresources.com; Listing: ARG: TSX.

Contact Details

Aurora Davidson, President and CEO

+1 604-697-6207

[email protected]

Graham Farrell, Investor Relations

+1 416-842-9003

[email protected]

Company Website

http://www.amerigoresources.com/

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