Thursday, November 04, 2010

TNR Gold Corp.: Los Azules Copper Project Court Date Set for Summer 2011 tnr.v, abx,, czx.v,,, bhp, rio, tck, bvn, gg, fcx, nem, auy,,,,,,,,

"Los Azules emerges in this light as a very important Copper deposit with a lot of upside in its valuation among the leaders in this particular quality, relatively high CAPEX requirements, but in the solid middle or to the higher band in a lot of different investment metrics compare to the other juniors in the analysis provided by CIBC."

It is very important that, according to CIBC report page 42, legal claims of TNR Gold are communicated properly within the industry now. Junior can fully rely on its litigation strategy, court decision or potential out-of-the-court settlement, should Minera Andes decide to clean the house before calling the real estate agents. 
We will always leave it to the lawyers and court to decide - who owns what in this case in its proper time.
Copper is going up and the deposit is growing - we guess that nobody is in a hurry here. Argentina will become more fluent in Mandarin and the value of every lb of Copper in the ground will go up - to reflect fundamental picture described in the CIBC report."

Please, do not forget, that we own stocks we are writing about and have position in these companies. We are not providing any investment advise on this blog and there is no solicitation to buy or sell any particular company here. Always consult with your qualified financial adviser before making any investment decisions.


2010-11-04 18:05 ET - News Release

Mr. Gary Schellenberg reports


TNR Gold Corp.'s litigation in the Supreme Court of British Columbia related to the Los Azules project in Argentina, involving TNR, Minera Andes Inc., MIM Argentina Exploraciones S.A. (Xstrata) and related entities, has been joined for hearing and scheduled for a new trial date of June 20 to July 15, 2011. The trial will be held in Vancouver.

As disclosed by TNR in Stockwatch on May 17, 2010, the subject of the legal actions is TNR's right to back-in to 25 per cent of certain properties constituting the Los Azules project. The Los Azules project is an advanced exploration project currently reporting a National Instrument 43-101-compliant inferred resource. MAI and Xstrata are contesting TNR's ability to exercise its back-in right. TNR is vigorously pursuing its claim and opposing MAI's efforts to deny the back-in right.
The company encourages interested parties to review the amended statement of defence and counterclaim in their entirety on its website for a better understating of TNR's position.
It should be noted that the statement of defence and counterclaim are not intended to be, and should not be interpreted as, sources of factual, business or operational information about TNR or any of its affiliates. The statement of defence and counterclaim contain assertions that have been prepared solely for use in connection with the legal dispute with MAI and Xstrata, have not been proven and should, therefore, not be relied upon.
We seek Safe Harbor."

We are checking the new presentations and Los Azules Maps on Minera Andes website - it looks like, according to Rob Mcewen on page 22, stepping out hole with 1.12% Cu over 62.5m and four best holes:
#46 1.08% Cu over 145 m;
#48 1.01% Cu over 216 m;
#49 1.05% Cu over 236 m and
#61 1.04% Cu over 168 m
 are all based on the Northern Part of the property, which is under this litigation. 

We have now another followers from Metal Augmentor:

TNR Gold (TSX-V: TNR; Pink Sheets: TRRXF)
Minera Andes (TSX: MAI; OTCBB: MNEAF)
TNR Gold Corp.: Los Azules Copper Project Court Date Set for Summer 2011 - November 4, 2010
There is probably very little that will happen with the Los Azules project while TNR Gold’s claim to a 25% back-in right to a portion of the Los Azules project is litigated over the next year or so. That isn’t necessarily a big deal since neither the present valuation of TNR Gold nor Minera Andes relies much if at all on Los Azules. On the other hand, Los Azules could start looking more and more attractive to mining companies as other large South American copper projects are developed in the next few years, leaving fewer major properties in the pipeline. As mentioned previously, we do consider Los Azules as a likely development prospect, despite its remote, high altitude location, because the “layout” of the mineralization is favorable in comparis0n to many other large porphyry copper deposits. Thus, we do expect that Los Azules will command a substantial valuation at some point in the future, making the outcome of the TNR Gold dispute a relevant matter for investors with patience.
With respect to that dispute, Minera Andes appears to have an obvious legal edge based on a literal reading of the option agreement and this will be difficult for TNR Gold to overcome. By no means, however, does Minera Andes have a cakewalk on its hands given that it is unusual (even suspicious) for an optionee’s back-in right to be for a minority non-operating interest conditioned on performance by the optioner. Since the 36 month condition was a modification of the original letter of understanding, which had an open-ended back-in right, the legal merit of the case could very well come down to determining what if any new value was received by TNR Gold in exchange for allowing the 36 month condition (which clearly works against TNR Gold’s benefit). As the hearing nears and assuming we think there is some speculative money to be made, we’ll try to find and read through the agreements to see if TNR Gold did indeed appear to receive something in exchange for the loss of benefit due to the 36 month restriction. [Silverax]'

It is important to remember, that now, according to this NR, all litigation around Los Azules between TNR Gold, Minera Andes and Xstrata is joined in one trial and TNR Gold will seek, according to the Statement of Defence above, not only rectification of the option agreement to reflect its true intentions - without 36 months condition, but that "production of a feasibility study, whether produced within 36 months or some other time, was a condition solely for the benefit of Solitario (TNR Gold sub - S.), and as such, could be waived".

Also at stake is Escorpio IV property: 
"We did not understand why Minera Andes did not accepted the back in right by TNR Gold and lost opportunity to consolidate the project and secure a very important Escorpio IV property, where according to Minera Andes mining plan part of mining facilities supposed to be located, but Rob McEwen must has his own strategy. With this kind of presentation it will be not cheap any more to settle out of the court, but it is always better then drag such a project in litigation for years to come."
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