Full press release - MAI Los Azules declines TNR bNothing like lawsuit on April Fools!
Thoughts?
Keep in mind this is a huge project growing beyond 11 billion lbs of Copper, mined out at
.85/lb..
2010-04-01 14:20 ET - News Release
Mr. Nils Engelstad reports
MINERA ANDES REJECTS TNR GOLD CORP.'S CLAIM OF BACK-IN RIGHT
Minera Andes Inc. has filed a statement of claim in the Supreme Court of British Columbia against TNR Gold Corp. and its subsidiary, Solitario Argentina S.A.
In recent conversations and correspondence with Minera Andes, TNR has asserted that it has an immediate right to back into the Los Azules project.
Minera Andes rejects the ability of TNR to back into any part of the Los Azules project.
By way of background, the project was, until the fall of 2009, subject to an option agreement between Xstrata Copper and Minera Andes. In the fall of 2009, Xstrata elected not to exercise its option to back into the project and subsequently transferred all properties then held by Xstrata (and forming part of the project) to Minera Andes. Minera Andes now owns 100 per cent of the project.
Certain of the Los Azules properties formerly held by Xstrata and transferred to Minera Andes following the termination of the option agreement however remain subject to an underlying option agreement between Xstrata and TNR, whereby TNR has the right to back into up to 25 per cent of the subject properties, exercisable by TNR upon the satisfaction of certain conditions within 36 months of Xstrata exercising its option, including the completion of a feasibility study. It is important to note that the subject properties comprise the northern half of the project and do not represent 25 per cent of the Los Azules deposit by area or resources identified.
The 36-month period following the exercise of the option expires on or about April 23, 2010, and no feasibility study has been completed on the project.
The TNR agreement is the subject of a legal dispute between Xstrata and TNR, commenced by TNR against Xstrata in the Supreme Court of British Columbia. The dispute surrounds the validity of the 36-month time limit described above. In particular, TNR claims the 36-month time frame, although clearly stated in the TNR agreement, was added by Xstrata, overlooked by TNR (and its lawyers) when signed, not discovered for a number of years and in any event not the commercial intention of the parties.
According to communications between Minera and TNR, TNR seeks to waive the condition that a feasibility study be completed on the project prior to TNR being entitled to exercise its back-in right. It is Minera's view that TNR's back-in right is dependent upon the production of a feasibility study which has never been produced. Further, Minera Andes disputes the legal ability to waive this condition.
Although not party to the litigation between TNR and Xstrata, Minera Andes is seeking a declaration that any back-in notice delivered by TNR prior to April 23, 2010, will be null, void and of no force and effect.
As an additional point of clarification, Minera Andes wishes to confirm that notwithstanding references by TNR to its Los Azules project, that the project remains 100 per cent owned by Minera Andes and Minera Andes has no agreement or working relationship with TNR.
The company looks forward to informing its shareholders of TNR's response.
Minera Andes reports full year results
In other news, for the year ended Dec. 31, 2009, net income in accordance with Canadian GAAP (generally accepted accounting principles) was $4.1-million (two cents per share basic and diluted) compared with a net loss of $4.0-million (two cents per share) for the year ended Dec. 31, 2008. This increase was primarily due to an increase in the income recorded on the company's 49-per-cent-owned investment in Minera Santa Cruz SA, which owns the San Jose mine, from $4.7-million in 2008 to $9.3-million in 2009. In addition, the company recorded an income tax recovery of $1.6-million and total expenses in 2009 declined by $1.8-million compared with 2008.
For full details, please refer to the company's audited annual financial statements and management's discussion and analysis for 2009 filed on SEDAR and its Form 40-F filed on EDGAR.