Minera Andes Inc.
News Release 98-8
ASE: MAI
NASD-OTC: MNEAF
Minera Andes' Warrants Exercised;
1997 Operating and Financial Results Reported
SPOKANE, WA-April 7, 1998-A total of 1,440,766 warrants were exercised at
CDN$1.60 (two warrants equal one share) on March 31, 1998. This netted an
additional CDN$1,152,613, bringing the total working capital of Minera Andes
Inc. to approximately CDN$5.3 million, with 19,936,433 shares issued and
outstanding.
Separately, Minera Andes reported combined, year-end, 1997 financial
(amounts in U.S. dollars) and operating results, which include continued
sufficient levels of working capital, and reconnaissance drilling and
exploration at various prospects, including the El Pluma/Cerro Saavedra
silver/gold discovery project in Santa Cruz Province, Argentina.
Warrants
Exercise of the warrants stem from a private placement financing completed
on December 13 and December 19, 1996. In that financing, Minera Andes
raised CDN$7,078,010 through the issuance of 3,370,481 special warrants at a
price of CDN$2.10 per special warrant.
Each special warrant was comprised of a unit consisting of one common share
and one common share purchase warrant. The units were qualified by
prospectus in May 1997. Originally, two common share purchase warrants
entitled the holder to purchase one additional common share at an exercise
price of CDN$2.50 on or before December 13, 1997, and at an exercise price
of CDN$2.88 on or before December 13, 1998. Subsequently, the exercise price
for the first exercise was amended to CDN$1.60 and extended to March 31,
1998. Other terms and conditions, including those relating to the second
exercise on December 13, 1998, remain unchanged.
In addition, a total of 340,420 brokers' special warrants were issued. Each
broker special warrant was exercised into a purchase warrant with the same
terms as the above common share purchase warrants, at no additional cost.
Financial
Minera Andes reported working capital at December 31, 1997 of US$4.0
million, compared to US$6.6 million at December 31, 1996. The decline is a
result of expenditures for the Corporation's ongoing successful mineral
exploration program in Argentina.
Net loss for 1997 was US$4.3 million, or US$0.24 per share. The net loss
includes a write-off of deferred exploration costs of $3.0 million,
primarily for the La Horqueta, Arroyo Nuevo, and Pino Andino exploration
properties. These results compare with a net loss of US$1.3 million, or
US$0.10 per share, in 1996.
Operations
Reconnaissance drilling was conducted in 1997 on the Arroyo Nuevo gold
property, and advanced exploration and geophysics was undertaken at the El
Pluma/Cerro Saavedra silver/gold properties. A joint venture, with Minera
Andes as the operator, was entered into with Pegasus Gold International for
the Arroyo Verde silver/gold prospect in Chubut Province. Reconnaissance
drilling is forecast at Arroyo Verde for 1998, as well as on selected
prospects in western Chubut Province.
A number of major mining companies continue to express joint venture
interest in several of Minera Andes' copper and gold/copper properties in
Argentina.
The Corporation is maintaining an ongoing exploration program emphasizing
more advanced projects with known potential, as well as an ongoing interest
in early stage grassroots prospects. This strategy further allows Minera
Andes to focus financial and personnel resources on its leading properties,
including the Santa Cruz silver/gold discovery.
Minera Andes is a mining exploration corporation that controls approximately
25 properties on about 570,000 acres of mineral exploration land in
Argentina. Most of the properties are located in the Andean cordillera and
primarily contain gold, copper and silver exploration targets. The
Corporation is presently pursuing the further development of its epithermal
gold/silver discovery in Santa Cruz Province. Selected opportunities in
other countries are also under review.
For further information please contact Arthur C. Johnson, Director of
Investor and Public Relations, or Allen V. Ambrose, President, at the
Spokane office or Kris Kottmeier, Investor Relations-Canada, at the
Vancouver office. Visit our web site: www.minandes.com.
Spokane Office Vancouver Office
3303 N. Sullivan Road 1210-675 W. Hastings St.
Spokane, WA 99216 USA Vancouver, B.C. V6B 1N2 Canada
Phone: (509) 921-7322 Phone: (604) 689-7017
E-mail: minandes@thefuture.net E-mail: mineracan@thefuture.net
Although Minera Andes believes many of its properties have promising
potential, its properties are in the early stages of exploration. None have
yet been shown to contain proven or probable mineral reserves. There can be
no assurance that such reserves will be identified on any property or that,
if identified, any mineralization may be economically extracted.
THE ALBERTA STOCK EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED THE
INFORMATION CONTAINED HEREIN. |
