Gotta love HochschildFrom Minera Andes -another Hochschild partnership enterprise :
SPOKANE, WA, Dec. 19 /PRNewswire-FirstCall/ - Minera Andes Inc. (TSX: MAI and US OTC: MNEAF) - Minera Andes Inc. ("MAI") announced that following a meeting of the shareholders of Minera Santa Cruz, S.A. ("MSC") on December 17, 2008, the shareholders of MSC can expect to receive a cash call of US$23 million to finance further expansion and development of the San Jose project. MSC is owned, indirectly, as to 51% by Hochschild Mining plc ("Hochschild") and as to 49% by MAI. MSC is the registered owner of the San Jose gold project in Argentina. MAI's share of the cash call is approximately US$11.3 million, payable by mid-February, 2009. Failure by MAI to pay this amount when due will result in a dilution of MAI's interest in MSC below 49%. MAI is investigating financing alternatives available to it.
This request for additional funding is being made notwithstanding previous assurances by Hochschild that additional cash calls would not be required as the mill and plant are operating and Phase I of the initial expansion has been completed. Further plant expansion costs were therefore expected to be paid from cash flow.