Wednesday, November 09, 2011

Los Azules Litigation TNR Gold vs Minera Andes - Trial Date is Set for November 2012 tnr.v, ilc.v, czx.v,, uxg, rm.v, lmr.v, abn.v, asm.v, btt.v, bva.v, bvg.v, epz.v, fst.v, gbn.v, hao.v, jnn.v, ks.v, ktn.v, kxm.v, mgn, mxr.v,, svb, ura.v,,,

  Minera Andes has filed MD&A today.

"The San Juan Project comprises four properties, which includes Los Azules in southwestern San Juan province. At present, these lands are not subject to a royalty; however, the government of San Juan has not waived its rights to retain up to a 3% “mouth of mine” royalty from production. Annual land holding costs are approximately $0.04 million.
On April 1, 2010, the Company (and certain subsidiaries) filed a Statement of Claim in the Supreme Court of British Columbia against TNR Gold Corp and its subsidiary, Solitario Argentina S.A. (together “TNR”). This claim was subsequently consolidated with a related matter between TNR and MIM Argentina Exploraciones S.A. (“Xstrata Copper” or “Xstrata”) commenced by TNR against Xstrata in the Supreme Court of British Columbia in 2008. These claims, in part, pertain to a purported 25% back-in right (or in the alternative, damages) by TNR to certain properties comprising the Company’s Los Azules copper project.
Certain of the properties formerly held by Xstrata (and certain affiliates) and later transferred to the Company pursuant to the (Los Azules) Option Agreement remain subject to an underlying option agreement between Xstrata and Solitario Argentina S.A. (“Solitario”), whereby Solitario had the right to back-in up to 25% of the properties covered by the underlying option agreement (the “Solitario Agreement”), exercisable by Solitario upon the satisfaction of certain conditions within 36 months of Xstrata exercising the option, including the production of a feasibility study. Xstrata exercised the option pursuant to the Solitario Agreement effective April 23, 2007. The 36-month period expired on April 23, 2010, without a feasibility study having been completed. TNR has also subsequently amended its claim to include that Xstrata (and Minera Andes) did not complete the required exploration expenditures pursuant to exercise the option to acquire the properties underlying the Solitario Agreement. TNR, by consequence, among other things, claims properties underlying the Solitario Agreement should be returned to TNR. The properties subject to these claims comprise a significant portion of the Los Azules copper project.
The Company rejects the alleged right of TNR to back-in to any portion of the Los Azules Copper Project and its assertion that the Solitario Agreement option was not validly exercised. At this time, the Company is not able to estimate the potential financial impact of this claim. However, if resolved adversely to the Company, this litigation could materially adversely affect the value of the Company’s interest in the Los Azules Project and its ability to develop the Los Azules Project. A trial date in the foregoing matter has been set for November 2012."

  As you can see on the maps below, TNR Gold now claims the return of the Northern Half of the deposit where the high grade core is located.

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.

TNR Gold: Los Azules Litigation: Minera Andes: Los Azules Project Exploration Progress Update

  "Some Minera Andes shareholders are not very happy these days with the valuation proposed in the merger with US Gold.  The "Big Copper in Argentina" has been promoted by Minera Andes as one of the largest Copper deposits in the world -before TNR Gold was allowed its new claims last May - now it has shrunk dramatically on paper in valuation of the "independent financial advisers" in order to support the proposed acquisition price by US Gold. This shrinkage has affected even the 49% in the Silver producing mine in Argentina as well.
  Business is tough in Canada and who said that relationships with junior partners should be any different than with the small shareholders? Some of them are talking now about lawsuits to follow, misrepresentation of facts and other heavy litigation staff - people are getting emotional and frustrated. We would think as well that by now COO of the company should know better and made the clarification that TNR Gold is now seeking return of the Northern Half of the Los Azules deposit and not only 25% back in right, but we are sure Minera Andes shareholders are already better informed.
  In the other news about the project the very important information is that the Copper is still there in the ground, there are NO glaciers in the area and NO other shrinkages was reported in the area. We can expect the size of the deposit to grow further:
"During the last season, nine wells were drilled in order to confirm the previously defined resources, in addition to two deep exploration wells. In one of the latter a new mineralized areas was found, located southwest of the already defined resources area. With regards to diamantine, 5,655 meters were drilled and 4,793 meters were drilled with reverse air. Due to this new mineralized area, it is possible that the amount of resources may increase."

  Stakes are getting bigger and companies involved in this case as well - we continue to monitor the situation. 

 June 23, 2011

Vancouver B.C.: TNR Gold Corp. (the "Company"). TNR advises that it has taken note of the proposed merger of Minera Andes Inc. with US Gold to form McEwen Mining Inc. or some other similar entity. For further information please see the news release from Mineral Andes dated June 14, 2011.

As TNR is currently engaged in litigation against Minera Andes Inc. and three of its subsidiaries, TNR advises that it will be monitoring the developments with Minera Andes Inc. and intends to ensure that TNR's rights in the litigation are not prejudiced by any changes to the ownership of Los Azules or the identity of the Minera Andes parties.

Additional information can be obtained on the TNR corporate Los Azules webpage - 

Public Court Documents on Los Azules litigation:

We have found emails between Minera Andes and Xstrata presented in TNR Gold's application particularly entertaining:


TNR Gold (Solitario) properties are called Xstrata on the map below and above that line.

Mineweb: Minera Andes drops plans to spin-out Los Azules because of a court case with TNR Gold questioning its full ownership of the project. 

TNR Gold Insiders activity: 

As of 11:59pm ET November 8th, 2011
Insider NameOwnership
SecuritiesNature of transaction# or value acquired or disposed ofUnit
Nov 8/11Nov 7/11Listov, AlexanderDirect OwnershipCommon Shares10 - Acquisition in the public market500,000$0.060
Nov 4/11Nov 3/11Listov, AlexanderDirect OwnershipCommon Shares10 - Acquisition in the public market500,000$0.050
Oct 12/11Oct 12/11Klip, KirillDirect OwnershipCommon Shares10 - Acquisition in the public market100,000$0.050
Jul 29/11Jul 28/11Varshney, HariDirect OwnershipOptions50 - Grant of options200,000$0.100
Jul 29/11Jul 28/11Bella, Jerome MichaelDirect OwnershipOptions50 - Grant of options250,000$0.100
Jul 29/11Jul 28/11Chung, PaulDirect OwnershipOptions50 - Grant of options200,000$0.100
Jul 28/11Jul 28/11Sieb, MikeDirect OwnershipOptions50 - Grant of options250,000
Jul 28/11Jul 28/11Schellenberg, Gary David AlbertDirect OwnershipOptions50 - Grant of options750,000$0.100
Jul 28/11Jul 28/11Klip, KirillDirect OwnershipOptions50 - Grant of options500,000$0.100
Jun 17/11Jun 17/11Schellenberg, Gary David AlbertDirect OwnershipCommon Shares10 - Acquisition in the public market50,000$0.075

Enhanced by Zemanta
Post a Comment