Minera Andes completes $23-million equity financing

2009-08-19 09:01 ET - News Release

Mr. Art Johnson reports

MINERA ANDES COMPLETES CDN$23 MILLION EQUITY FINANCING

Minera Andes Inc. has completed its previously announced offering of $20,025,000 of units, on a bought deal basis, at a price of 75 cents per unit. The offering was conducted by a syndicate of underwriters led by Canaccord Capital Corporation and included Scotia Capital Inc., GMP Securities L.P. and Haywood Securities Inc. The corporation is also pleased to announce the issue and sale of an additional $3,003,750 of units pursuant to the exercise, in full, of the previously announced overallotment option granted to the underwriters to purchase 4,005,000 additional units on the same terms and conditions as the offering. With exercise of the overallotment option, the total gross proceeds to the corporation from the offering is $23,028,750.

Each unit consists of one common share and one-half of one common share purchase warrant, each whole warrant is exercisable at $1.25 for a period of five years after closing. In the event that the volume-weighted average trading price of the corporation's common shares on the Toronto Stock Exchange (or such other stock exchange or quotation system on which the corporation'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 corporation 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 TSX has accepted the warrants together with the common shares and warrant shares for listing.

The net proceeds from the offering are approximately $21,077,312 (after deduction of fees and expenses), and will be used: (i) to finance general administrative expenses to maintain capacity for the following 12 months; (ii) to evaluate grassroots gold-silver epithermal targets in the Santa Cruz and San Juan provinces; (iii) for property payments, transfer costs and exploration at the Los Azules project; and (iv) for working capital.