US Gold Acquires Minera Andes and is Renamed McEwen Mining
|Areas||Corporate Finance and Securities, Litigation, Mining and Natural Resources|
Goodmans acted as Canadian counsel to the Special Committee of US Gold Corporation ("US Gold") in connection with US Gold’s (NYSE, TSX: UXG) acquisition of Minera Andes Inc. (TSX: MAI; OTCBB: MNEAF) by plan of arrangement under the Business Corporations Act (Alberta) and then was renamed McEwen Mining Inc. (NYSE, TSX: MUX). At the time of closing, McEwen Mining had a market capitalization of approximately $1.4 billion.
Under the plan of arrangement, Minera Andes shareholders received 0.45 of an exchangeable share of McEwen Mining - Minera Andes Acquisition Corp. (TSX: MAQ), a subsidiary of US Gold, for each Minera Andes common share. Each exchangeable share is exchangeable on a one-for-one basis for common stock of McEwen Mining. The combination of US Gold and Minera Andes initially was proposed by Robert McEwen, the Chairman, CEO and largest shareholder of both companies. Mr. McEwen is the President and CEO of McEwen Mining and owns approximately 25 per cent of the outstanding common stock.
McEwen Mining, based in Toronto, explores for gold, silver and copper in the Americas. It is advancing its El Gallo Project in Mexico and its Gold Bar Project in Nevada towards production and has three significant assets in Argentina: a 49 per cent interest in Minera Santa Cruz SA, owner of the San Jose Mine that is located near Goldcorp’s Cerro Negro project; 100 per cent ownership of the Los Azules copper deposit; and 100 per cent ownership of a large portfolio of exploration properties in Santa Cruz province, Argentina, including properties bordering the Cerro Negro project.