McEwen Capital

McEwen Capital

February 19, 2009 14:44 ET

Rob McEwen Makes Additional Investments in Minera Andes Shares

TORONTO, ONTARIO--(Marketwire - Feb. 19, 2009) - Rob McEwen has entered into an agreement with Minera Andes Inc. (the "Company") pursuant to which he has purchased 18,299,970 common shares of the Company ("Common Shares") by way of a private placement at a price of C$1.00 per share (the "First Acquisition") and has the right, subject to certain conditions, to acquire an additional 21,700,030 Common Shares (the "Second Acquisition") as described below.

Under the terms of the agreement, Mr. McEwen will assume the bank loan owing by the Company to Macquarie Bank Limited in the aggregate principal amount of US$17.5 million, if certain consents are received by February 25, 2009. The loan will be convertible by Mr. McEwen at a price of C$1.00 per share into a total of 21,700,030 Common Shares at any time, subject to approval by the shareholders of the Company at a meeting of shareholders within 60 days of the closing of the First Acquisition. If the requisite consents to the transfer of the loan are not obtained by February 25, 2009, the Company will issue 21,700,030 Common Shares to Mr. McEwen at a price of C$1.00 per share.

The Common Shares purchased by Mr. McEwen in the First Acquisition represented approximately 9.6% of the number of outstanding Common Shares prior to giving effect to the First Acquisition and increased Mr. McEwen's beneficial ownership of Common Shares (which for this purpose includes 100,000 Common Shares issuable upon exercise of stock options held by Mr. McEwen) from 46,157,143 Common Shares (approximately 24.3% of the outstanding Common Shares) to 64,457,113 Common Shares (approximately 30.9% of the outstanding Common Shares). The Common Shares that would be acquired in the Second Acquisition represent approximately 11.4% of the number of outstanding Common Shares prior to giving effect to the First or Second Acquisition, and would increase Mr. McEwen's beneficial ownership to 86,157,143 Common Shares (approximately 37.4% of the outstanding Common Shares.

Mr. McEwen entered into these transactions for investment purposes. He may increase or reduce his investment in the Company according to market conditions or other relevant factors.

Contact Information

  • McEwen Capital Corporation
    Robert R. McEwen
    (647) 258-0395 or Toll Free: 1-866-441-0690
    (647) 258-0408 (FAX)
    McEwen Capital Corporation
    Corporate Head Office
    99 George Street, 3rd Floor
    Toronto, Ontario M5A 2N4