RE: new issue/whyIs there a use for the cash. Is it to pay for the chariot shares. Is there an another reason. It wasn't very long ago that they issued this statement
AMERIGO ANNOUNCES SHARE REPURCHASE PROGRAM
November 10, 2005
VANCOUVER, BRITISH COLUMBIA -- Nov. 10, 2005 /CNW/ - Amerigo Resources Ltd. (TSX:ARG) announced today its intention to effect a normal course issuer bid through the facilities of the Toronto Stock Exchange. Under this issuer bid, Amerigo is entitled to purchase up to 7,845,154 common shares during the one year period commencing on November 14, 2005 and ending on November 13, 2006.
Amerigo has 86,225,844 common shares issued and outstanding. The shares that may be repurchased under this issuer bid represent 10% of Amerigo's public float, which is estimated to be 78,451,541 common shares.
The actual number of shares that may be purchased during the one year period and the time of such purchases will be determined by Amerigo. All shares purchased under the issuer bid will be cancelled. During the 12 month period prior to the date of this press release, Amerigo has not purchased any of its common shares.
Amerigo is undertaking this issuer bid as it believes that the current market price of its common shares does not reflect the underlying value of Amerigo.