TORONTO, ONTARIO -- (MARKET WIRE) -- 03/17/11 -- Minera Andes Inc. (the "Corporation" or "Minera Andes") (TSX: MAI)(OTCBB: MNEAF) is pleased to announce that it intends to complete a spin-out its Los Azules Copper Project into a new publicly traded company. The Los Azules Project is a 100% owned advanced-stage porphyry copper exploration project located in the cordilleran region of San Juan Province, Argentina near the border with Chile. It is one of the world's largest undeveloped copper deposits with an indicated mineral resource of 137 million tonnes grading 0.73% copper, equivalent to 2.2 billion pounds of copper, and an inferred mineral resource of 900 million tonnes grading 0.52% copper, equivalent to 10.3 billion pounds of copper. Exploration and infill drilling continues with five drills currently operating at the Los Azules Copper Project. -- Management believes now is the time to unlock the value and potential of Minera Andes' world class Los Azules Copper Project. -- The spin-out of the Los Azules Copper Project allows Minera Andes shareholders to retain exposure to a world-class copper deposit with a copper-focused management in a pure copper vehicle. -- Minera Andes will continue to aggressively advance priority gold and silver projects with the objective of adding ounces to the San Jose Mine and making discoveries at our 100% owned grass-roots projects surrounding Goldcorp's Cerro Negro property (recently acquired by Goldcorp for $3.6 billion). An updated preliminary assessment on the Los Azules Copper Project was released in December 2010. It is based on the updated resource estimate announced in June 2010 and higher base case metal price assumptions: -- Using a Copper price of $3.00/lb -- Base case pre-tax Net Present Value ("NPV") is $2.8 billion and the Internal Rate of Return ("IRR") is 21.4%, at a discount rate of 8% -- Life of mine Cash Operating Costs of .96/lb of copper net of gold and silver by-product credits -- Initial Capital $2.9 billion -- Capital Payback in 3 years -- Mine life of 25 years -- Forecasted Annual Copper Production: 1st 5 Years: 500 million lbs, Life of Mine: 375 million lbs The spin-out transaction will be affected under a statutory plan of arrangement in the Province of Alberta (the "Arrangement"). Under the proposed terms of the Arrangement, the shareholders of Minera Andes will retain their common shares in Minera Andes and will be entitled to receive one common share of the new company for every share of Minera Andes held on the record date for the Arrangement. The completion of the Arrangement will be subject, among other things, to Toronto Stock Exchange, Court and shareholder approval; as well, a favourable tax ruling from the Canada Revenue Agency. Additional prospective copper exploration assets currently owned by Minera Andes will be included with the Los Azules Copper Project in the Arrangement. Further details regarding the Arrangement will be set out in an Information Circular that will be sent to shareholders in advance of the extraordinary shareholders meeting, anticipated to be held in late June 2011 to seek approval for the Arrangement and related matters. About Minera Andes Minera Andes is an exploration company exploring for gold, silver and copper in Argentina with two significant assets in addition to the Los Azules Copper Project: A 49% interest in Minera Santa Cruz SA, owner of the San Jose Mine in close proximity to Goldcorp's Cerro Negro project; and, 100% ownership of a large portfolio of exploration properties in Santa Cruz province, Argentina, including properties bordering the Cerro Negro project in Santa Cruz Province. The Corporation had $31 million USD in cash as at February 7, 2011 with no bank debt. Rob McEwen, Chairman and CEO, owns 31% of the shares of the company. |