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  | | Mon May 8, 2006
Rob McEwen Completes Early Exercise of C$7.8 Million of Minera Andes Warrants
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| | Not for distribution to U.S. newswire services or for dissemination in the U.S.
SPOKANE, WA - May 8, 2006 - Minera Andes (TSX-V: MAI and US OTC: MNEAF) is pleased to announce that on May 5, 2006 Rob McEwen completed the early exercise of all the common share purchase warrants he held in the company. As a result, a total of 14,285,714 common shares were issued resulting in gross proceeds of C$7,857,143 to Minera Andes. In addition, Mr. McEwen has reported that he purchased 1.2 million shares in the market at C$1.10 per share, during March.
Following his initial investment in Minera Andes four months ago, Mr. McEwen has increased his holdings to 30% of the company and is our largest shareholder. This represents a total investment of approximately C$19 million in Minera Andes. McEwen's previous investments in Minera Andes consisted of C$10 million in two private placements completed in December of 2005 and March of 2006. The details of the private placements and warrant terms were previously disclosed in our press releases dated December 21, 2005 and March 13, 2006. The common shares issued to Mr. McEwen on exercise of his warrants are subject to a hold period expiring with respect to 7,707,370 common shares on April 21, 2006 and with respect to 6,578,344 common shares on July 9, 2006.
In consideration for the early exercise of all his common share purchase warrants, Minera Andes will issue to Mr. McEwen 2 million new common share purchase warrants. Each new warrant will entitle McEwen to purchase one common share at an exercise price of C$1.80 per share for a term of 12 months expiring on May 5, 2007. Canaccord Capital Corporation assisted in the transaction and received a fee of C$50,000. The warrants will be subject to a hold period expiring on September 6, 2006 (4 months and 1 day).
Minera Andes has received a total of approximately C$15 million from the exercise of warrants and options, including Mr. McEwen's warrants, since the beginning of the year. As a result, Minera Andes has determined not to proceed with a previously announced bridge financing for US$5 million. Consequently, Minera Andes will not issue the approximately 6.1 million two-year share purchase warrants (exercisable at C$0.93 each) that were to have been issued in connection with this debt financing.
Allen Ambrose, president of Minera Andes, said, "We are pleased to see the increased support and investment into Minera Andes by our shareholders, including Rob McEwen, who is a proven industry leader in the gold sector. With our goal of near term production at our San José silver/gold project, we have recently reached several important milestones to advance the project.
These include a formal decision to place the project into production and the March 2006 receipt of the EIA permit approvals to build the mine and process facilities to take us to production. In addition, we are exploring on our large portfolio of wholly-owned exploration properties in Argentina with drilling at the Los Azules copper property."
Rob McEwen is Chairman and CEO of U.S. Gold Corporation (USGL: OTC BB) and was the founder, former Chairman and CEO of Goldcorp Inc. Over the past eighteen years Mr. McEwen turned Goldcorp Inc. from an investment company with a market capitalization of $50 million into a mining company with a market value over $7.0 billion today. He has been honored with such awards as the Northern Miner's Man of the Year Award; Ernst & Young's Ontario Entrepreneur of the Year Award in the Energy Category; and the Prospectors and Developers Association of Canada's Developer of the Year award. Under his leadership Goldcorp was named one of Fast Company magazine's 50 Companies of Innovation, and Business Week magazine's selection as one of the 50 most innovative companies on the web.
Minera Andes is a gold, silver and copper exploration company working in Argentina. Minera Andes holds about 440,000 acres of mineral exploration land in Argentina, including the co-owned San José silver/gold project now under construction and development for planned mine production. Minera Andes has also discovered an enriched copper zone at its Los Azules property and is acquiring other exploration targets in southern Argentina. The Corporation presently has 148,286,595 issued and outstanding shares.
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., Suite A
Spokane, WA 99208 USA
Phone: (509) 921-7322
E-mail: info@minandes.com
Vancouver Office
410-744 West Hastings Street
Vancouver, B.C. V6C 1A5
Phone: (604) 689-7017; 877-689-7018
E-mail: ircanada@minandes.com
FORWARD-LOOKING STATEMENT - The Corporation's results will be subject to known and unknown risks and uncertainties that may cause the Corporation's actual results in future periods to differ materially from forecasted or anticipated results. Among those factors which could cause actual results to differ materially are the following: the risks inherent in mineral exploration and the mining industry, the Corporation's needs for additional capital, and other risk factors listed from time to time in the Corporation's public filings. In addition, Minera Andes' joint venture partner, Mauricio Hochschild & Cia. Ltda., does not accept responsibility for the use of project data or the adequacy or accuracy of this release.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. |
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| | You can view the Next News Releases item: Tue May 23, 2006, Minera Andes Drilling Cuts 221 Meters (725 Ft) of 1.62% Copper at Los Azules Project, Argentina
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