Minera Andes arranges $20-million equity financing

2009-07-24 08:26 ET - News Release

An anonymous director reports

MINERA ANDES ANNOUNCES CDN$20 MILLION EQUITY FINANCING

Minera Andes Inc. has entered into an agreement with Canaccord Capital Corporation pursuant to which Canaccord and a syndicate of underwriters have agreed to purchase for resale to the public and Minera Andes has agreed to issue $20,025,000 of units, on a "bought deal" basis, at a price of 75 cents per unit. In addition, the company has agreed to grant Canaccord an option to purchase additional units of Minera Andes to raise additional gross proceeds of up to 15 per cent of the offering, on the same terms and conditions as the offering, exercisable any time, in whole or in part, up to 48 hours prior to the closing date of the offering. If the overallotment option is exercised in full, the total gross proceeds to Minera Andes will be $23,028,750. Each unit consists of one common share and one-half of one common share purchase warrant, each whole warrant exercisable at $1.25 for a period of five years after closing. In the event that the volume weighted average trading price of the company's common shares on the Toronto Stock Exchange (or such other stock exchange or quotation system on which the company's shares are listed and where a majority of the trading volume occurs), for a period of 20 consecutive trading days exceeds $2.50, the company may, within five days after such an event, provide notice to the warrantholders of early expiry and thereafter, the warrants will expire on the date which is 30 days after the date of the notice to the warrantholders.

The units to be issued under the offering will be offered by way of a short form prospectus to be filed in all of the provinces of Canada, except Quebec.

The net proceeds from the offering are expected to be used to finance ongoing exploration and development activities at the company's gold projects and working capital requirements as required.

The offering is expected to close on or about Aug. 27, 2009, and is subject to normal regulatory approvals, including the approval of the Toronto Stock Exchange.