South American Silver Corp.

South American Silver Corp.

February 19, 2007 12:29 ET

South American Silver Corp. Announces Successful Completion of Initial Public Offering and Commences Trading on TSX

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 19, 2007) - South American Silver Corp. ("SASC" and "Company") (TSX:SAC) is pleased to announce that it has successfully completed its initial public offering (the "IPO") of 34,000,000 common shares. The common shares were issued pursuant to a final prospectus of the Company dated February 7, 2007 at a price of $0.50 per share, for total gross proceeds of $17,000,000. The common shares began trading today on the Toronto Stock Exchange under the symbol "SAC". Upon completion of the IPO, there were 42,600,000 common shares of the Company issued and outstanding.

MGI Securities Inc. acted as lead agent, with Dundee Securities Corporation, for the IPO. The Company has also granted the agents an option (exercisable within 30 days of closing) to purchase up to an additional 5,100,000 common shares at $0.50 per common share for additional gross proceeds of $2,550,000.

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.

The funds raised through the IPO will be used to aggressively explore and advance the 100% controlled Malku Khota flagship silver property and to continue the exploration at Laurani. At Malku Khota the planned exploration includes a substantial program of drilling, tunneling and detailed metallurgical testing.

Certain statements contained herein constitute "forward-looking statements". These forward-looking statements are based on current expectations. The nature, timing and extent of the exploration programs may materially change from current intentions for a number of reasons. Additionally, "forward looking statements" look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "plans," "intends," "anticipates," "should," "estimates," "expects," "believes," "indicates," "targeting," "suggests," "potential" "interpretation" and similar expressions. These forward-looking statements, are based on current expectations and entail various risks and uncertainties. Actual results may materially differ from expectations as more information regarding the property is gathered or if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. The Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason.

Contact Information

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