SPOKANE, Wash., July 29, 2005 (PRIMEZONE) -- Minera Andes Inc. (TSX-V:MAI) (OTCBB:MNEAF) today announces it has closed on the final tranche of US$2 million or a US$4 million loan facility from Macquarie Bank Limited ("Macquarie"). This facility was provided in two tranches for funding of Minera Andes' 49% portion of the costs of completing a bankable feasibility study and related development work for the San Jose/Huevos Verdes silver/gold project in Argentina. Macquarie is an international banking group that is a provider of capital to the mining sector.
The commercial terms of the loan on the second tranche include a facility fee of 1.5% of the principal amount and an interest rate of Libor plus 2% p.a., currently totaling approx 5.7% p.a. In addition, a success fee of US$20,000, being one percent of the principal amount of the first second tranche, is payable to Xystus Limited for assisting with the structuring and negotiation of the loan facility.
In connection with the second tranche of the facility, Minera Andes has issued share purchase warrants to Macquarie to acquire 3,987,742 Common Shares of Minera Andes at an exercise price of Cdn$0.62 per share. The warrants exercise price was calculated at a 20 percent premium to the volume weighted average of Minera Andes' common stock determined from the ten business days prior to acceptance of this offer. Each warrant is to be exercisable for two years and will expire on July 20, 2007. Conditional approval has been obtained from TSXV Exchange.
Minera Andes is funded with working capital of approximately US$3.5 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 silver/gold 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 90,549,719 issued and outstanding shares.
This news is submitted by Allen V. Ambrose, President and Director of Minera Andes Inc.
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 410 - 744 West Hastings St. Spokane, WA 99208 USA Vancouver, B.C. V6C 1A5 (509) 921-7322 (604) 689-7017; 877-689-7018 E-mail: mineraandes@minandes.com 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.