Spokane, Washington – December 19, 2007 – Minera Andes Inc. (TSX: MAI; US OTC: MNEAF) has set terms for a brokered private placement of units for gross proceeds of up to $35.0 million, expected to close December 21, 2007.
Each unit, priced at Cdn$1.55, will consist of one common share and one half of one common share purchase warrant. One whole common share purchase warrant will entitle the holder to purchase one additional common share at an exercise price of Cdn$2.00 per share for a period of 24 months from the closing date. The proposed private placement is subject to receiving all necessary regulatory approvals and issued securities will be subject to a four-month hold period. Scotia Capital Inc. (�Scotia�) will be acting as agent on the private placement in Canada while Shoreline Pacific LLC and Casimir Capital L.P. will act in the U.S. (together the �Agents�).
The Agents will receive a 5% commission. The Agents will also receive Agent�s compensation options equal to 5% of the aggregate number of units sold pursuant to the offering. Each Agent�s compensation option upon exercise will entitle the holder to acquire one unit at an exercise price of Cdn$1.70 per unit for a period of 24 months from the date of issue. A total of 22,580,645 common shares may be issued pursuant to the private placement, and up to 11,290,322 common shares will be reserved for issuance on exercise of the warrants and 1,129,032 units for issuance on the exercise of the agent�s compensation options.
Minera Andes intends to use the proceeds from the offering to fund its share of the costs at the San Jos� project in southern Argentina, as well as for exploration drilling and completing a scoping study at Los Azules and for general corporate purposes.
Minera Andes is a gold, silver and copper exploration company working in Argentina. The Corporation holds about 410,000 acres of mineral exploration land in Argentina including the co-owned San Jos� silver/gold mine that has started initial production. Minera Andes is also exploring the Los Azules copper project in San Juan province, where an exploration program is underway to define a resource. Other exploration properties, primarily silver and gold, are being evaluated in southern Argentina. The Corporation presently has 167,094,267 shares issued and outstanding.
This news is submitted by Allen V. Ambrose, president and director of Minera Andes Inc.
For further information, please contact: Art Johnson at the Spokane office, or Krister A. Kottmeier, investor relations – Canada, at the Vancouver office. Visit our Web site: www.minandes.com.
Spokane Office
111 East Magnesium Rd.,
Spokane, WA 99208 USA
Phone: (509) 921-7322
E-mail: mineraandes@minandes.com |
Vancouver Office
Suite 911 - 470 Granville St,
Vancouver, BC. V6C 1V5
Phone: (604) 689-7017 / 877-689-7018
E-mail: ircanada@minandes.com |
Caution Concerning Forward-Looking Statements:
This press release contains certain "forward-looking statements", including, but not limited to, the statements regarding the Company's strategic plans, evolution of mineral resources and reserves, work programs, development plans and exploration budgets. The forward-looking statements express, as at the date of this press release, the Company's plans, estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuations in the market price of base metals, mining industry risks, risks associated with foreign operations, the state of the capital markets, environmental risks and hazards, uncertainty as to calculation of mineral reserves, and other risks. Reference is made to the risk factors and uncertainties described in the Company's continuous disclosure record, a copy of which is available under the Company's profile at www.sedar.com.
Cautionary Note to U.S. Investors:
The United States Securities and Exchange Commission (the "SEC") permits mining companies, in their filings with the SEC, to disclose only those mineral deposits with "mineral reserves" that a company can economically and legally extract or produce. We use certain terms in this press release, such as "mineral resources", that the SEC guidelines strictly prohibit us from including in our filings with the SEC.
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