South American Silver Corp.

South American Silver Corp.

February 27, 2007 11:00 ET

South American Silver Corp. Announces Receipt of Notice of Exercise of Over-Allotment Option

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 27, 2007) - South American Silver Corp. ("SASC") (TSX:SAC) announces that it has received notice from MGI Securities Inc., as lead agent on behalf of itself and Dundee Securities Corporation (collectively, the "Agents"), of the exercise in full of the over-allotment option (the "Over-Allotment Option"), previously granted to the Agents by SASC in connection with the initial public offering of common shares of SASC that closed on February 19, 2007.

Pursuant to the Over-Allotment Option, SASC intends to sell an additional 5,100,000 common shares at a price of $0.50 per common share for additional gross proceeds to SASC of $2,550,000. It is anticipated that the closing of the Over-Allotment Option will occur on or about February 28, 2007.

Certain statements contained herein constitute "forward-looking statements". These forward-looking statements are based on current expectations. Forward-looking statements may include words such as "plans," "intends," "anticipates," "should," "expects," "believes," and similar expressions.

The Company is a mineral exploration company that acquires, explores and develops mineral properties, primarily silver, gold and copper in South America. The Company presently holds interests in three properties, being the flagship Malku Khota silver-gold and the Laurani gold-silver properties in Bolivia and the Escalones copper-gold-molybdenum property in Chile which is under option to Minera Aurex (Chile) Limitada, the Chilean subsidiary of Phelps Dodge Corporation.

Contact Information

  • South American Silver Corp.
    Richard Doran
    Executive Vice President, Investor Relations
    (303) 584-0606
    (303) 758-2063 (FAX)