/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
SPOKANE, WA, Dec. 21 /CNW/ - Minera Andes Inc. (TSX: MAI and US OTC:
MNEAF) has completed the first closing on its up to Cdn$35 million brokered
private placement, for gross proceeds of Cdn$21.515 million by issuing
13,880,645 units at a price of Cdn$1.55 per unit. The financing, announced in
our news release on December 19, 2007, planned for multiple closings.
Each unit consists of one common share and one-half of one common share
purchase warrant. One whole common share purchase warrant entitles the holder
to purchase one additional common share at an exercise price of Cdn$2.00 per
share until December 21, 2009. The securities are subject to a four-month hold
period. Notable subscribers to the financing include the Lundin Family Trusts
who subscribed for Cdn$9.75 million in units. Scotia Capital Inc. ("Scotia")
acted as agent on the private placement in Canada while Shoreline Pacific LLC
acted in the U.S. (together the "Agents").
The Agents received a 5% commission. The Agents also received 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 until December 21, 2009. A total of 13,880,645 common shares may be
issued pursuant to the private placement, and up to 6,940,322 common shares
will be reserved for issuance on exercise of the warrants and 694,032 units
for issuance on the exercise of the agent's compensation options.
Minera Andes will use the proceeds from the offering to fund its share of
the costs at the San José project in southern Argentina, as well as for
exploration drilling and completing a scoping study at Los Azules, general
exploration, 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 José 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
180,974,912 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.
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 at the Company's San José Project.
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. In
particular, there can be no assurance that commercial production at the San
José mine will be achieved on a timely basis, or at all, that production
capacity at the San José mine will be successfully increased, that resources
and reserves at the San José mine will be increased or that Minera Andes will
successfully raise the funds necessary to maintain its interest in the San
José mine. 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 precious 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. In
addition, Minera Andes' joint venture partner, a subsidiary of Hochschild
Mining plc, and its affiliates do not accept responsibility for the use of
project data or the adequacy or accuracy of this release.
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.
For further information:
For further information: Spokane Office: 111 East Magnesium Road; Ste.
A, Spokane, WA, 99208 USA, Phone: (509) 921-7322, E-mail: email@example.com;
Vancouver Office: 911-470 Granville Street, Vancouver, B.C., V6C 1V5, Phone:
(604) 689-7017, (877) 689-7018, E-mail: firstname.lastname@example.org