Newspaper article The Canadian Press

Minera Andes Rejects TNR Gold Offer to Settle Dispute over Copper Project: Minera Andes Rejects TNR Gold Offer

Newspaper article The Canadian Press

Minera Andes Rejects TNR Gold Offer to Settle Dispute over Copper Project: Minera Andes Rejects TNR Gold Offer

Article excerpt

Toronto miner Minera Andes Inc. (TSX:MAI) is rejecting a proposal by a Vancouver junior to settle a dispute over a copper project in Argentina.

Minera Andes, partly owned by well-known Canadian mining executive Rob McEwan, said Friday it has rejected an offer by TNR Gold Corp. to settle the lawsuit if it gets paid US$125 million.

TNR, which has a stock market value of nearly $12 million, claims many of the properties under an earlier option agreement between the companies on the potentially valuable Argentine copper project.

In a release Friday, TNR Gold (TSXV:TNR) said it offered to settle its lawsuit over a substantial portion of the mineral properties included in the Los Azules project in Argentina US$125 million -- in cash or shares.

"After due consideration and having received the input of the special committee, the board of directors of Minera Andes resolved unanimously to reject the offer from TNR Gold as unreasonable," Minera Andes said in a statement.

"Minera Andes continues to reject TNR Gold's claims and intends to continue to vigorously defend against those claims and looks forward to resolving this matter in the courts of British Columbia."

In addition to the Los Azules project, Minera Andes owns a portfolio of exploration properties in Santa Cruz province, Argentina, including properties bordering the Goldcorp's Cerro Negro project and a 49 per cent stake in Minera Santa Cruz SA, owner of the San Jose Mine.

The company signed a deal last year to be acquired by US Gold Corp. (TSX:UXG) in a stock-swap transaction that would see each Minera Andes shareholder receive 0.45 of a US Gold share for every one Minera Andes share.

A shareholder meeting to vote on the deal -- which will create a new merged company called McEwen Mining Inc. -- is set for Jan. 19.

McEwen, 61, a former chairman and CEO of gold giant Goldcorp, is chairman and CEO of Minera Andes and owns a 30 per cent stake in the company. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.