Tuesday, February 10, 2009

Minera Andes MAI.to - Rob McEwen's intent to take control of Minera Andes despite Hochschild bid. MAI.to, TNR.v, CDNX, XAU, HUI, GDX.

TNR Gold TNR.v was first mentioned on NR about the scoping study of Los Azules from Minera Andes. Solitario is a subsidary of TNR Gold.
""Certain of the MIM Properties are subject to an underlying option agreement, which is the subject of a dispute between Xstrata Copper, as option holder, and Solitario Argentina S.A. ("Solitario"), as the grantor of that option and the holder of a back-in right of up to 25%, exercisable upon the satisfaction of certain conditions, within 36 months after the exercise of the option by Xstrata Copper. The dispute surrounds the validity of the 36 month restriction described above. If Solitario is successful, MIM's interest in substantially all of the MIM Properties may be reduced by up to 25% and upon exercise of the MASA Option, MASA's interest in that part of the Combined Property may be similarly reduced (the "Solitario Claim")."
TNR Gold is also holding property Escorpio IV adjusent to Los Azules and subject of a law suit from junior against Xstrata. More on law suit.

The promise of another Rob McEwen-owned and operated company-and a $70 million cash offer by Hochschild Mining has Spokane's Minera Andes basking in the investment spotlight.Author: Dorothy KosichPosted: Tuesday , 10 Feb 2009

Uber mining investor Rob McEwen Monday rode to the rescue of financially strapped junior miner Minera Andes, (TSX: MAI) Monday despite a Hochschild Mining offer to also get control of its joint venture partner in the San Jose Project.
Goldcorp founder McEwen--who originally invested in Minera Andes at the same time he was heavily promoting the future of U.S. Gold on the Battle Mountain-Eureka Trend in Nevada-appears to be getting serious about Minera's San Jose silver and gold joint venture with Hochschild Mining, which is the 51% owner and operator of the Argentina mine.
Minera Andes announced Monday that the company had entered into a letter of agreement with McEwen, who has agreed to make a Cdn$40 million private placement in the Spokane, Washington-based junior miner/explorer. McEwen's offer will give Minera the US$11.3 million it needs immediately to cover a cash call imposed by Hochschild in respect of Minera's 49% interest in the San Jose project.
Another US$17.5 million will be applied to repay Minera Andes' debt to Macquarie Bank Limited. The remainder of McEwen's investment will be used for "general corporate purposes and exploration," Minera said.
McEwen, who now owns 24.3% of Minera Andes, would exercise control of 53.7% of the junior miner under the agreement.
However, Hochschild had already made its own bid on 6th February to acquire Minera Andes 49% ownership interest in San Jose for a cash consideration of up to US$70 million or Cdn45-cents per MAI share - and made a public announcement to this effect late Monday. Hochschild also made an offer to acquire all of Minera Andes for 0.22 shares of Hochschild for each share of MAI held, implying a value of US$0.50 for each MAI share.
In addition, Hochschild offered to give Minera Andes an extra 10 days to repay its cash call to Hochschild, which is due on February 17th, as well as offering short-term bridge financing to Minera Santa Cruz, another Hochschild/Minera joint venture.
Minera Andes has applied to the Toronto Stock Exchange for an exemption from security holder approval requirements. The members of the Special Committee of the Corporation's Board of Directors, Allan Marter, Donald Quick and Victor Lazarovici "have concluded that the corporation is in serious financial difficulty as a result of the cash call of the San Jose Project and the outstanding indebtedness, the private placement is intended to improve the corporation's financial situation, and the private placement is reasonable for the corporation under the circumstances."
The TSX has advised the company that it is subject to a de-listing review as a result of relying on the hardship exemption. "The corporation believes that, upon completion of the private placement, it will be in compliance with all of the TSX listing requirements," Minera said.
In addition to its San Jose JV, Minera announced last week that a preliminary assessment of the Los Azules copper project, also in the San Juan Province of Argentina, could produce 170,000 tonnes annually of copper concentrate for 23.6 years. Annual by-product production is estimated to average 38,000 ounces of gold and 1.26 million ounces of silver.
The project is in a remote location near Argentina's border with Chile.
Post a Comment