Minera Andes completes Cdn$23 million equity financing



    
    /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
    THE UNITED STATES/
    

    VANCOUVER, Aug. 19 /CNW/ - MINERA ANDES INC. (TSX:MAI) (the "Corporation"
or "Minera Andes") is pleased to announce that it has completed its previously
announced offering of Cdn$20,025,000 of units, on a "bought deal" basis, at a
price of Cdn$0.75 per unit (the "Offering"). The Offering was conducted by a
syndicate of underwriters led by Canaccord Capital Corporation and included
Scotia Capital Inc., GMP Securities L.P. and Haywood Securities Inc.
(collectively, the "Underwriters"). The Corporation is also pleased to
announce the issue and sale of an additional Cdn$3,003,750 of units pursuant
to the exercise, in full, of the previously announced over-allotment option
granted to the Underwriters to purchase 4,005,000 additional units on the same
terms and conditions as the Offering. With exercise of the over-allotment
option, the aggregate gross proceeds to the Corporation from the Offering is
Cdn$23,028,750.
    Each unit consists of one (1) common share (a "Common Share") and one
half of one common share purchase warrant, each whole warrant (a "Warrant") is
exercisable at Cdn$1.25 for a period of 5 years after closing (each common
share issuable upon exercise thereof, a "Warrant Share"). In the event that
the volume weighted average trading price of the Corporation's common shares
on the TSX (or such other stock exchange or quotation system on which the
Corporation's shares are listed and where a majority of the trading volume
occurs), for a period of 20 consecutive trading days exceeds $2.50, the
Corporation may, within five days after such an event, provide notice to the
warrant holders of early expiry and thereafter, the warrants will expire on
the date which is 30 days after the date of the notice to the warrant holders.
    The TSX has accepted the Warrants together with the Common Shares and
Warrant Shares for listing.
    The net proceeds from the Offering are approximately Cdn$21,077,312
(after deduction of fees and expenses), and will be used: (i) to finance
general administrative expenses to maintain capacity for the following 12
months; (ii) to evaluate grassroots gold-silver epithermal targets in the
Santa Cruz and San Juan provinces; (iii) for property payments, transfer costs
and exploration at the Los Azules Project; and (iv) for working capital.

    The securities being offered have not been, nor will be, registered under
the United States Securities Act of 1933, as amended (the "U.S. Securities
Act"), and may not be offered or sold within the United States or to or for
the account or benefit of "U.S. Persons" (as defined in Regulation S under the
U.S. Securities Act) absent U.S. registration or an applicable exemption from
U.S. registration requirements. This press release does not constitute an
offer of securities for sale in the United States or to or for the account or
benefit of U.S. Persons.

    Minera Andes is a gold, silver and copper exploration company with a 49%
interest in the San José silver-gold mine in Santa Cruz, Argentina. The San
José mine is owned by Minera Santa Cruz S.A. ("MSC"), which in turn is owned
49% by Minera Andes and 51% by Hochschild Mining plc. Hochschild is the
operator of the San José mine, and exercises total operating control of the
mine. The Corporation also owns the Los Azules copper project in San Juan
province, where a scoping study has been completed and the Corporation is
awaiting a decision by its joint venture partner, Xstrata Copper Company, if
it will exercise its right to back in to a 51% ownership of the project. The
Corporation holds or has an interest in approximately 304,000 acres of mineral
exploration land in Argentina located in the regions near the San José mine
and Los Azules project. After giving effect to the Offering, the Corporation
has 261,393,851 shares issued and outstanding.
    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.




For further information:

For further information: Spokane Office: 111 East Magnesium Road; Ste.
A, Spokane, WA 99208 USA, Phone: (509) 921-7322, E-mail: info@minandes.com;
Vancouver Office: 911-470 Granville Street, Vancouver, B.C., V6C 1V5, Phone:
(604) 689-7017, (877) 689-7018, E-mail: ircanada@minandes.com

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MINERA ANDES INC.

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