Minera Andes partner Xstrata has 30 days to back in

2009-09-01 10:20 ET - News Release

Mr. Art Johnson reports

MINERA ANDES PROVIDES STATUS UPDATE ON ITS LOS AZULES COPPER PROJECT OPTION AGREEMENT WITH XSTRATA

Minera Andes Inc. has released an update on its option agreement with Xstrata (and certain Xstrata affiliates) on its Los Azules copper project in Argentina. As previously announced in Stockwatch, Minera Andes has exercised its 100-per-cent-earn-in option with respect to the project effective June 1, 2009, thereby granting Xstrata 90 days to deliver notice of exercise of its right to back in to the project for a 51-per-cent interest. This 90-day period has expired without Xstrata having delivered the back-in notice. Minera Andes has so notified Xstrata and by the terms of the agreement Xstrata now has 30 days, expiring Oct. 1, 2009, to deliver the back-in notice. After delivery of the back-in notice, in order to exercise the back-in right, Xstrata must pay Minera Andes, within 90 days of delivery of the back-in notice, an amount equal to three times the direct expenditures incurred by the corporation and its affiliates since Nov. 25, 2005, and assume operational control and responsibility of the project no later than 120 days after delivery of the back-in notice. Xstrata must also produce a feasibility study in accordance with the standards set out in National Instrument 43-101 -- Standards of Disclosure for Mineral Projects, adopted by the Canadian securities administrators within five years of delivery of the back-in notice.