SPOKANE, Wash., Sept. 26, 2004 (PRIMEZONE) -- Minera Andes Inc. (TSX Venture Exchange:MNEAF) (OTCBB:MNEAF) has mandated RMB Resources Limited ("RMB") of London, England to undertake due diligence with a view to arranging finance for Minera Andes' 49% share of the San Jose/Huevos Verdes gold/silver project in Argentina. RMB Resources Limited is a member of the well-known resource banking group, Rand Merchant Bank, itself a member of the FirstRand Group.
RMB is to commence due diligence with a view to arranging a U.S. $4.5 million two-year debt facility that will act as bridge financing for Minera Andes' share of the costs of completing a feasibility study and initial work with respect to establishing a mine at Huevos Verdes. If RMB is successful in arranging this financing, it has asked for an arrangement fee equal to 4.5% of the facility amount plus warrants to acquire Common Shares of Minera Andes. The number of warrants to be issued will be equal to the principal amount of the loan facility divided by C$0.65. If the full facility amount were arranged, a total of approximately 8.86 million warrants would be issued (based on current exchange rates). Each warrant would be exercisable for two years from closing at a price of C$0.65 each. An affiliated member of the FirstRand Group would provide any project finance that is arranged.
The project finance arrangements and the arrangements with RMB are subject to receipt of the approval of the Board of Directors of Minera Andes, of the TSXV and of Minera Andes' joint venture partner at Huevos Verdes, Mauricio Hochschild & Cia. Ltda.
Minera Andes is funded with working capital of approximately U.S. $4.5 million for its exploration and underground construction programs. Minera Andes is a mining exploration company focused on gold, silver and copper exploration in Argentina where it holds about 200,000 hectares (500,000 acres) of mineral exploration land and co-owns the advanced stage San Jose/Huevos Verdes gold/silver project now under construction for possible mine production, with a feasibility study underway. Minera Andes has also discovered an enriched copper zone at its Los Azules property, and is acquiring other exploration targets in southern Argentina. The Corporation presently has 70,361,490 issued and outstanding shares.
For further information, please contact: Art Johnson at the Spokane office, or Krister A. Kottmeier, investor relations - Canada, at the Vancouver office. Visit our Web site: www.minandes.com.
Spokane Office Vancouver Office
111 East Magnesium Rd., Suite A 1000-355 Burrard Street
Spokane, WA 99208 USA Vancouver, B.C. V6C 2G8
Phone: (509) 921-7322 Phone: (604) 689-7017
877-689-7018
E-mail: mineraandes@minandes.com E-mail: ircanada@minandes.com
FORWARD-LOOKING STATEMENT- 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, mineralization may be economically extracted. There can be no assurance that the San Jose/Huevos Verdes gold/silver project will be found to be economically feasible or that a mine will successfully be constructed. In addition, Minera Andes' joint venture partner, Mauricio Hochschild & Cia. Ltda., does not accept responsibility for the use of project data or the adequacy or accuracy of this release.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.