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Tuesday, February 10, 2009

Minera Andes MAI.to - Hochschild offers to buy JV partner Minera Andes. MAI.v, TNR.v, CDNX, GDX, HUI, XAU.

Things are getting hot in Argentina. Now it brings another perspective on yesterday's announcement of Robert McEwen investment of CAD40 mln. Cash call coming out of the blue from Hochschild Mining for Minera Andes MAI.s now looks not as innocent: share price was driven down into the ground and then this proposal submitted to the Minera Andes Board on Friday. McEwen will have to explain couple of things to shareholders as well: why this information was not made public before of his announcement because it is definitely material. Anyway we are very pleased to see this development and they are positive for Argentina outlook as a whole, for Minera Andes shareholders options to chose from and for Los Azules project development which we are monitoring via TNR Gold TNR.v Canadian junior involved in the story.

Hochschild offers to buy JV partner Minera Andes

LONDON (Reuters) - Latin American silver and gold producer Hochschild Mining Plc (HOCM.L) has made an all-share takeover offer for its joint venture partner Minera Andes Inc. (MAI.TO), Hochschild said on Tuesday.
Hochschild said it made a proposal on February 6 to the board of Minera to pay 0.22 of its shares for each Minera share, which valued Minera shares at 62 Canadian cents, a 100 percent premium to the closing share price on February 5.
Hochschild said at the same time, it made an alternate proposal to acquire Minera's 49 percent stake in their joint venture San Jose for $70 million.
Hochschild said it was making known the proposals following Minera's announcement on Monday that it had agreed a C$40 million ($32.73 million) private placement with Robert McEwen at a price of 33 Canadian cents per share.
Hochschild said its proposals expire on Wednesday.
(Reporting by Eric Onstad; Editing by Erica Billingham)

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