Business
Extension of Offer to Minera
Extension of Offer to Minera.
About this update from Hochschild Mining Plc
[{"type":"text","content":"\n RNS Number : 2629N Hochschild Mining PLC 13 February 2009 \n \n12 February 2009 \n\n\nHochschild Mining extends the deadline of its offer to Minera Andes\n\n\nHochschild announces that, further to its press release of 9 February 2009, it has agreed to extend the deadline of its proposals to the Board of Minera Andes Inc ('MAI'), to purchase either the whole company or MAI's 49% interest in Minera Santa Cruz, the joint venture company owned by Hochschild and MAI. The offer is now open for acceptance until 10pm GMT on 13 February 2009. The terms of the offer remain the same and are detailed below. \n\nIn addition to its short-term bridge financing to Minera Santa Cruz and MAI, Hochschild has also offered additional financial relief to MAI, should MAI be prepared to proceed with either of the proposals.\n\nAs announced in its press release of 2 February 2008, MAI requires funding to meet its financial obligation under a bank loan as well as to cover a cash call of US$11.3 million by Minera Santa Cruz which will be used to finance the cash needs of the San José project. \n\nThe cash call was required from both Hochschild and MAI to cover a cash flow deficit created by (i) a furnace problem at San José that impacted production and thus cash flow for several days (ii) a delay in ramping up the plant to the expanded capacity of 1,500 tpd (iii) a delay in the reimbursement of VAT expenses by the Argentinean Government and (iv) the significant decrease in precious metals prices in the last quarter of 2008. Hochschild has already made its cash contribution and MAI now has until 3 March 2009 to contribute its share of the funding. \n\nNotes to editors \n\nOn 9 February 2009 MAI announced a C$40.0 million private placement with Robert R. McEwen at a price of C$0.33 per share. Following this, Hochschild Mining made an announcement to inform MAI shareholders that, on 6 February 2009, the following firm proposals were made to the Special Committee of the Board of Directors of MAI. These firm proposals, shown below, will now expire at 10pm GMT on 13 February 2009. \n\n'A) Hochschild would acquire all of the outstanding common shares of MAI through a share transaction (including shares issuable pursuant to outstanding MAI options (the 'MAI Shares')) by way of a Plan of Arrangement under the...