Brilliant...Brilliant...Brilliant move TNR!!! This was a brilliant and pre-emptive move by TNR and its legal advisors!!
First.....it does not add any financial strain to the potential McEwan merger as it is an offer involving ONLY SHARES WITH NO EXCHANGE OF $125 million in cash.
If the McEwen Merger closes, TNR is agreeable to payment in registered shares of McEwen Mining valued at market.
Second......it shows that TNR is more than willing to settle OUT OF COURT as the next step in the legal process is shown immediately below.
The various proceedings in the Los Azules Litigation have been consolidated and the pleadings are being amended, so that all issues will be heard together in a six week trial scheduled for late 2012. The Court filings relating to the litigation are available from the BC Supreme Court registry database (BC Online) and are hosted on TNR's webpage at www.tnrgoldcorp.com/s/LosAzules.asp.
Kirill Klip, Chairman of TNR commented that: "We strongly believe that our settlement offer is in the best interests of the shareholders of TNR, Minera Andes and US Gold. The Los Azules project is considered to represent one of the largest undeveloped copper projects in the world but the current legal uncertainty over its legal ownership is detracting from the value of the project for shareholders of all three companies."
"The offer made to shareholders of Minera Andes by US Gold has, I believe, been discounted by the Special Committee of US Gold and its financial advisors because of the uncertainty regarding legal title to the Solitario Properties and the possibility that an adverse determination in the Los Azules Litigation could reduce or terminate its interest in the Solitario Properties."
"If the McEwen Merger is completed, continued uncertainty as to legal title to the Los Azules mineral interests could impede financing of the project and adversely impact the trading price of the shares of McEwen Mining. If the McEwen Merger is completed, US Gold on a consolidated basis will inherit the legal liabilities and costs associated with the Los Azules Litigation, including the risk of loss of all or a significant portion of the northern portion of the project or of a substantial damage award."
Kirill Klip added that: "Acceptance of the TNR settlement offer would create the opportunity for Minera Andes to obtain clear and secure title to the Los Azules project and would provide certainty and clear value for the shareholders of Minera Andes and US Gold."
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The above personal remarks are solely MY OWN OPINION AND ARE NOT INVESTMENT ADVICE IN ANY WAY.