McEwen Capital

McEwen Capital

February 26, 2009 18:58 ET

Rob McEwen Makes Additional Investments in Minera Andes Shares

TORONTO, ONTARIO--(Marketwire - Feb. 26, 2009) - Rob McEwen announced today that he has acquired an additional 21,700,030 common shares ("Common Shares") of Minera Andes Inc. (the "Company") by way of private placement at a price of $1.00 per share under the terms of the agreement with the Company previously announced by Mr. McEwen on February 19, 2009. Pursuant to the agreement, Mr. McEwen had previously purchased 18,299,970 Common Shares by way of a private placement at a price of $1.00 per share (the "First Acquisition") and had the right, subject to certain conditions, to acquire an additional 21,700,030 Common Shares (the "Second Acquisition") as described below.

The agreement provided for Mr. McEwen to 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 had been received by February 25, 2009. The loan would have been 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 were not obtained by February 25, 2009, the Second Acquisition would be completed by the issuance of 21,700,030 Common Shares to Mr. McEwen in a private placement at a price of C$1.00 per share. Since the consents were not obtained by February 25, 2009, the private placement took place.

The Common Shares purchased by Mr. McEwen in the Second Acquisition represented approximately 10.4% of the number of outstanding Common Shares prior to giving effect to the Second 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 64,457,113 Common Shares (approximately 30.9% of the outstanding Common Shares) to 86,157,143 Common Shares (approximately 37.4% of the outstanding Common Shares).

Mr. McEwen acquired the Common Shares 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)
    Corporate Head Office
    McEwen Capital Corporation
    99 George Street, 3rd Floor
    Toronto, Ontario M5A 2N4