Vancouver – Minera Andes (MAI-T) 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 that Minera Andes is offering.
Each unit consists of one share a half a share purchase warrant that holders can exercise at $1.25 over five years following closing of the financing.
Minera Andes has retained the option to cancel the warrants in the event that its shares trade at or above $2.50 over a period of 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.
Minera Andes expects the $20 million offering to close Aug. 27.
Minera Andes’ share price has been consistently trading in the 75¢ range for some months now after plummeting, along with many other juniors, to below 50¢ between November and February.
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.
Currently Minera Andes and Hochschild, 49-51 partners at the San Jose mine, are ramping up production to 6 million oz. silver and 120,000 oz. gold a year. Minera Andes has pegged San Jose’s proven and probable reserves at 2.4 million tonnes grading 6.8 grams gold per tonne and 430 grams silver per tonne.
On news of the offering Minera Andes’ share price fell 11¢ to 73¢.
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