Business
Files suit against Minera And
Files suit against Minera And.
About this update from Hochschild Mining Plc
[{"type":"text","content":"\n RNS Number : 7239I Hochschild Mining PLC 17 March 2010 \n \n\n \n \n17 March 2010 \n \n \nHochschild files suit against Minera Andes seeking project financing repayment\n \n· Despite a $65 million loan disbursement by Hochschild, Minera Andes, Inc. and Minera Andes SA have refused to execute formal loan agreement documents for three years\n· Hochschild provided a project finance loan to the co-venture entity, Minera Santa Cruz, for the construction of the San José mine in Argentina\n· Minera Andes has caused an undue delay in documentation and repayment of this loan by refusing to execute formal loan documents\n· Legal action has no impact on the running of the San José mine, which is operated by Hochschild \nHochschild Mining plc (\"Hochschild\") today announces that it has filed suit in the New York State Supreme Court, asking that Minera Andes, Inc. (\"MAI\") of Alberta, Canada and its subsidiary, Minera Andes SA (\"MASA\"), be required to execute formal loan agreement documents for the $65 million project financing loan Hochschild provided to the San José gold and silver project in Argentina.\n \nThe mine, a co-venture between Hochschild and MAI, has been in operation since June 2007. Under the terms of letter agreements between the parties executed in October 2006, Hochschild alone provided the full amount of the project financing, totalling $65 million in instalments between October 2006 and July 2007.\n \nThe complaint alleges that MAI and MASA have unduly delayed the execution of formal loan documents and repayment of the loan by the co-venture entity, known as Minera Santa Cruz. Hochschild has made repeated attempts to finalize the formal loan agreement documents, but the suit alleges that MAI and MASA have made demands never contemplated by the original letter agreements.\n \nThe suit lists five separate causes of action. It seeks a decree by the court requiring MASA and its parent company to execute formal loan agreement documents with Hochschild, consistent with the previous agreements between the two companies. It asks that Minera Andes, Inc. and MASA be enjoined from further interference in the repayment of the project financ...