MAI's annual report is out!A large portion of 2008 milestone is dedicated to Los Azules - clearlythere's a solid focus on developing it further. This is very exciting for TNR i imagine - let's all hope the lawsuit advances further, clearly Los Azule will be a cornerstone for MAI going forward... I think they got tired of partnering with Hoschild on mining projects after that cash call debacle...
Will be interesting tosee mid June if Xstrata's decision to back in or not after theassessment filing (Mar 19) has any affect on the sp. To have such alarge portion of Los Azules under control - TNR should be trading morethan $.12-13, no?
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From Annual Report
To December 31, 2008, the Corporation has expended $13.3 million on exploration at the Los Azules Project and
on the preparation of a “preliminary assessment” (again, as defined in the Los Azules Option Agreement)
thereon. Pursuant to the terms of the Los Azules Option Agreement, we have delivered a copy of a technical
report in support of preliminary assessment and we anticipate delivering an independent scoping study to Xstrata
whereupon we will be entitled (by delivery of a written notice of exercise) to exercise our option to acquire a
100% interest in the MIM Properties (which properties may be reduced should Solitario be successful in the
Solitario Claim), whereupon we will hold a 100% interest in the Combined Property subject to a back-in right, as
to 51%, held by Xstrata and exercisable by Xstrata upon, among other things, payment to the Corporation of an
amount equal to three times the amount of the direct expenditures paid by MASA and its affiliates on the
Combined Property since November 25, 2005.
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Certain of the MIM Properties are subject to an underlying option agreement, which is the subject
of a dispute between Xstrata, as option holder, and Solitario Argentina S.A. (“Solitario”), as the
grantor of that option and the holder of a back-in right of up to 25%, exercisable upon the
satisfaction of certain conditions, within 36 months after the exercise of the option by Xstrata. The
dispute surrounds the validity of the 36 month restriction described above. If Solitario is
successful, MIM’s interest in substantially all of the MIM Properties may be reduced by up to 25%
and upon exercise of the MASA Option, MASA’s interest in that part of the Combined Property
may be similarly reduced (the “Solitario Claim”).