VANCOUVER — Minera Andes (MAI-T, MNEAF-O) is taking advantage of its strong share price to raise $20 million. A group of underwriters has agreed to buy about 26.7 million units at 75¢ a unit. Each unit consists of one share plus half a warrant, with each warrant exercisable at $1.25 for five years.
Minera Andes may cancel the warrants if its shares trade at or above $2.50 over at least 20 consecutive trading days. In that case, the warrants will expire 30 days after Minera Andes gives notice of its intention to cancel the warrants.
The ability to top up its kitty signals a return to a stronger footing for Minera Andes, which almost saw itself burn up in a fire sale to Hochschild Mining (HOC-L, HCHDF-O), its joint-venture partner at the San Jose silver-gold mine in Argentina, when subsidiary Minera Santa Cruz, the operator of the mine, made a surprise US$11.3-million cash call this past winter.
Minera Andes escaped the heat through rescue financing from major shareholder Rob McEwen.
Minera and Hochschild are currently ramping up production at San Jose to 6 million oz. silver and 120,000 oz. gold a year.
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