Lithium Everywhere - Spinoff Plans + Adding Shareholder value!? TNR.V, CLQ.V, WLC.V, MCI.v, CZX.V

It's a nice feeling being right sometimes.

As expected, Western Lithium was unable to finance at a fairly high price of $0.70/share. They have since adjusted back down to $0.50 and is aiming for an ambitious $5 million cash (ie. 10 million shares). They do have a well known management team - I'd keep watch on that group, estimate price should easily be $1+ if summer is set for a slight recovery in markets.

Mountain Capital - has historical brine resource in stable Alberta but seemed heavily promotional - I tend to be more skeptical of those. If you're lucky get in early and get out when it runs - these likely won't be the groups with multimillion buyouts from majors, but you could still get 40-50% gain... in a good market. It is currently trading at $0.075, down from its $0.15 a mere week ago, I suspect it may drop closer to $0.06.

I couldn't find much on the management team's past successes (and failures) so I'll leave it for investor's own due dilligence. Word of cautions - seems like Cloudbreak Resources is run by the same group - it's struggling a bit at the moment - make your own judgement about if that's an indication re: MCI... some of the investor comments on SH are pretty vicious, take both sides (buy/sell) with a grain of salt.

Canada Lithium seems to be speeding aheah with their Feasibility scheduled for 2009 - I'm anxious to see how they fare in lithium carbonate production from their Quebec mine. Their tout has been updated to 20,000 tonnes production - no time frame given. Trading ranges around $0.13-0.17 - easy potential run to $0.25, CEO Judy Baker has signed some credible group of experts onto the board.

Finally, TNR Gold Corp - remember we recommended a buy here along with CLQ a few weeks back?

Turns out they acquired a property next to the only lithium brine producer curently in North America.

The project is in Nevada : perfect for brine processing.

For everyone who's confused - lithium is usually mined as a byproduct. Brines however, is essentially dissolved lithium - meaning a simple process of evaporation is generally all that you need to extract the lithium. No messy underground mines, dangerous mine shafts, transporting huge rock wastes!

So why doesn't everyone just find brines then?

Well, it's also not that easy. The world's biggest brine resource is well, in Bolivia. And Bolivia hasn't been very cooperative lately about foreign investment going in and taking their resources - you get the idea?

That means as the world need more and more compact cell phones, lithium-battery-powered Hybrid Cars, glass products, etc, lithium demand is starting to overtake the large amount of lithium supplies... it makes sense! For such a versatile rare metal that's so infused in our daily lives, surely the prices should be going up now that even President Obama's touting energy conservation?

Don't worry, it is!

TNR Gold and Rodinia both respectively announced property in the area and has seen at least 70-100% gain in their starting share price. Why I like these two is because they are still diversified if you take away the lithium. Rodinia stands on its own Uranium property, while TNR has the mammoth Los Azules copper project (11.2 billion lb - $0.85/lb production cost that's awaiting feasibility report) and a controversial David-Goliath fighting with Xstrata over this back-in. Not to mention joint ventures with likes of Suramina (Lundin), La Mancha Resources, & NovaGold.

It's very rare seeing a junior with such low market cap that's able to strike deal with so many company. Last I checked they also have a deal with Barrick and BHP Billiton in Alaska..!! Check their page for more details. Not being a one-trick pony is huge - not to mention their management must have massive connections to swing so many deals!!

Since our last coverage of TNR / Rodinia area - this lithium Nevada thing has taken off.

Rodinia announced the property acquisition and action plan on it April 1st, 2009.

Rodinia closes Clayton Valley lithium property deal

2009-04-01 15:56 ET - News Release

Mr. Donald Morrison reports

RODINIA CLOSES TRANSACTION TO ACQUIRE 100% INTEREST IN NEVADA PROPERTY ADJACENT TO THE ONLY LITHIUM PRODUCER IN THE U.S.

Rodinia Minerals Inc. and its Wyoming subsidiary, Donnybrook Platinum Resources Inc., have closed the transaction with GeoXplor Corp. in respect of 250 unpatented mining claims located in the Clayton Valley, Esmeralda county, Nevada.

Clayton Valley is home to the only lithium producer in the United States. This plant extracts lithium from brines pumped from aquifiers below the valley and has been in production since 1967. The plant is designed to produce 1.2 million kilograms of lithium per year and to date has produced an estimated 50 million kilograms of lithium. Rodinia Minerals' property is adjacent to this production facility.

After receiving TSX Venture Exchange acceptance, the company has issued the first tranche of shares due to GeoXplor as part of the agreement, being 500,000 common shares, which are subject to a four-month hold period expiring on July 24, 2009. The agreement with GeoXplor gives Rodinia Minerals and Donnybrook the option to acquire a 100-per-cent interest in the property, subject to a 3-per-cent royalty in respect of lithium carbonate production and all other ores or minerals mined or extracted from the property. The option is exercisable by paying GeoXplor a total $322,000 (U.S.) over four years of which $25,000 (U.S.) has been paid to date; issuing to GeoXplor a total of 2.5 million shares of Rodinia Minerals, as to 500,000 shares on regulatory approval (issued) and 500,000 shares each year thereafter for four years, and incurring expenditures on exploration of the property of not less than a total of $2-million (U.S.) over four years. Rodinia Minerals may, at any time, accelerate any of the cash payments, share issuances or expenditures and can satisfy the expenditures requirement by delivering a prefeasibility study. The royalty can be bought down at any time upon payment of $1-million (U.S.) for each 1 per cent of the royalty. The agreement also provides that if, at any time, a positive feasibility study in respect of the property is delivered, or Rodinia Minerals and Donnybrook dispose of their interest in the property in any way, GeoXplor will be paid $2-million (U.S.) in cash, or, at the election of GeoXplor, in that number of shares of Rodinia Minerals as have a total value of $2-million (U.S.) determined on the basis of the closing market price per share of Rodinia Minerals' shares on the day preceding GeoXplor's election.

RM jumped almost 300% to $0.40 at one point on this spectacular acquisition. This next one though - we saw coming... even as we speak today there was another acquisition by this aggressive group.

TNR Gold stakes Fish Lake Valley in Nevada

2009-04-16 18:33 ET - News Release

Mr. Gary Schellenberg reports

TNR GOLD ACQUIRES NEVADA LITHIUM BRINE PROPERTIES

Following TNR Gold Corp.'s philosophy of generating quality projects and its recent entry into lithium and rare metals, the company is acquiring, by staking, the 640-acre Fish Lake Valley property in Nevada.

TNR Gold believes Fish Lake Valley has geological features similar to those which have acted as a trap for lithium brines in Clayton Valley. Chemetall-Foote Corp.'s Silver Peak operation, located in Clayton Valley 34 kilometres east of the property, is the only lithium brine producer in North America and has been in production since 1966.

United States Geological Survey sampling at Fish Lake Valley in 1976 found lithium brines on surface. One of these samples, located on TNR Gold property, contained 200 parts per million lithium. This falls within the range of concentrations reported to be used for production ponds at Chemetall-Foote's plant in Clayton Valley. To date, Chemetall-Foote's Silver Peak operation is estimated to have produced 234,000 tonnes of lithium carbonate at a rate of approximately 5,700 tonnes per year.

The presence of lithium-bearing surface brines shows that modern Fish Lake Valley has geological and climatic conditions where lithium brine can form. At Clayton Valley drilling conducted by the United States Geological Survey and Chemetall-Foote has shown that as climatic conditions went through cycles, successive layers of lithium-bearing evaporite were deposited.

During 1979, the United States Geological Survey conducted drilling operations in Fish Lake Valley as part of a lithium study. One of those holes, located on TNR Gold property, returned 21 parts per million lithium in water at 16.8 metres depth. This level of lithium in water is anomalous and similar to those found in Clayton Valley in proximity to subsurface brines.

John Harrop is the company's qualified person on the project as required under National Instrument 43-101, and he has reviewed the technical information contained in this press release.

TNR jumped 200% since our last feature blog for various TSX lithium juniors. I'll cover their most interesting press release from this week tomorrow.

TNR arranges spin-out of lithium, rare metals projects

2009-04-27 10:17 ET - News Release

Mr. Gary Schellenberg reports

TNR GOLD ANNOUNCES PROPOSED SPIN-OUT OF LITHIUM AND RARE METALS ASSETS

TNR Gold Corp. intends to spin out its lithium and rare metals projects into a newly incorporated, wholly owned British Columbia subsidiary of TNR Gold, International Lithium Corp. Upon completion of the transfer of the lithium and rare metals projects to International Lithium, TNR intends to distribute up to 75 per cent of the securities of International Lithium to TNR shareholders. Application will also be made to list the shares of International Lithium on the TSX Venture Exchange.

It is anticipated that the spin-out transaction will be completed pursuant to a plan of arrangement and will be subject to exchange, regulatory, court and shareholder approval, by not less than two-thirds of the votes cast at a special meeting of TNR shareholders which will be called to approve the spin-out transaction. Full details of the proposed spin-out transaction will be included in the information circulate to be sent to TNR shareholders in connection with the special meeting to be held in summer 2009, but it is anticipated that TNR shareholders of record will be entitled to receive one share and one full tradable warrant of International Lithium for every four shares of TNR held as of the as-yet-determined record date. The warrant will be exercisable at a price equal to a 50-per-cent premium to the company's listing price for a two-year period. In conjunction with the listing of the shares of International Lithium, TNR intends to complete an equity financing on terms to be determined, subject to regulatory approval.

Further details regarding the spin-out transaction, the proposed timing thereof and any proposed financing, will be released in the upcoming months.

TNR believes this corporate holding structure will deliver further shareholder value as International Lithium will be focused on increasing critical mass through acquisitions of high-potential lithium and rare metal projects globally. Current shareholders will continue to benefit from the group's ability to identify and add value to early stage projects for joint venture model, while enjoying the growth of the new subsidiary and the market's newfound appreciation for efficient lithium energy innovations. "With a subsidiary that is marketed as a focused and dominant player in the growing lithium and rare metals explorer realm, we believe it will provide the necessary visibility and efficiency that potential joint venture partners are looking for," states president and chief executive officer Gary Schellenberg.

TNR has reserved the domain name. The site will be linked to the current TNR website and feature property information, lithium industry articles, and relevant technical information. The site is currently in the process of being designed and constructed.

Completion of the spin-out transaction is subject to a number of conditions, including regulatory approval, shareholder approvals and approval of the British Columbia Supreme Court. There can be no assurance that the transaction will be completed as proposed or at all. Investors are cautioned that, except as disclosed in the information circular to be prepared in connection with the spin-out transaction, any information released or received with respect to the spinoff may not be accurate or complete and should not be relied upon. Trading in the securities of exploration and development stage resource companies should be considered highly speculative.

Lithium in Spotlight so is WLC, TNR, CLQ - Info on Lithium Expert Fred Breaks (AVL, Houston Lake, RES)

More and more, the world is realizing the need for a cleaner and more efficient energy solution.

When the powerhouse China steps into the arena, we will see alot more juniors jumping into the foray with their early stage properties. Whether or not those properties have merit is another question though!

Since our last lithium corporation coverage article March 18:


MCI has fallen off from $0.13 to around $0.08-0.09 range
Updates: They seem to have acquired a property with Zimtu group.

Not sure how MCI plans on funding this exploration project however, they seem to have a tendency to drop projects and jumped in/out several other commodities without much progress - Potash, Gold, etc.

Mountain Capital, Zimtu Capital property agreement 2009-04-07 16:31 ET - Property Agreement The TSX Venture Exchange has accepted for filing an property acquisition agreement dated Feb. 26, 2009, between Mountain Capital Inc., Zimtu Capital Corp., a TSX Venture Exchange-listed company, and 877384 Alberta Ltd. (Debbie Dahrouge), whereby the company will acquire a 100-per-cent interest in 41 metallic and industrial minerals permits, which consist of three separate properties located west to northwest of Edmonton, Alta. Total consideration consists of $90,000 in cash payments, 1.2 million shares of the company and 1.2 million share purchase warrants exercisable at 25 cents for two years, all payable and issuable within five days of exchange acceptance. In addition, there is a 3-per-cent net smelter return and a 5-per-cent gross overriding royalty on the gross production of diamonds. The company may, at any time, purchase 1 per cent of the net smelter return for $1-million in order to reduce the total net smelter return to 2 per cent. There is no buyback clause relating to the gross overriding royalty. There is a finder's fee of $8,400 cash and 67,200 shares payable to Richard Macey.

Last I checked they had $460K term deposit and $23K cash from SEDAR quarterly filings, can they afford to do much more with the acquisition? Zimtu is affiliated with Commerce Resources (CCE.v) - fair guess it is the same Dahrouge associated with VP Jodi Dahrouge, no? Makes you wonder why CCE doesn't keep it for itself for a mere $90K, CCE has $2 million+ in the bank.
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TNR GOLD CORP (TNR:TSX) - risen up to $0.07 from $0.05 - moving gradually up?
This group surprisingly was able to appoint Rare Element Resources' and Avalon Venture's flagship project founder - Dr. Fred Breaks.

Quick GOOGLE Search of F.Break's background will reveal this as very positive news - to have someone of that merit guide and review TNR's moves is a tremendous accomplishment. May see more market appreciation or even investors from RES / AVL jumping on board TNR. This guy has found some of the largest pegmatite type rare earth / lithium deposits in Canada. Houston Lake Mining's Pakeagama Lake property mineralization was also discovered by Dr Breaks it seems (link here).

Based on this initial field work, Dr Fred Breaks of the OGS conducted three weeks of detailed mapping and sampling in 1998. Dr. Breaks identified a strongly zoned, complex petalite subtype pegmatite. The combination of size, accessibility and the presence of both geochemical indicators and rare metal ore minerals, provide the Property with high potential for economic rare metal mineralization

Channel sampling of the 13 metre wide Northern Wall Zone of the Pakeagama Lake pegmatite returned 344 g/t tantalum oxide, 0.90 percent rubidium oxide, 1776 g/t cesium oxide, 68.9 g/t tin, 131.9 g/t niobium oxide, 1.34 percent lithium oxide, 25.9 g/t thallium, and 42.2 g/t gallium over a true width of 11 metres. The Pakeagama Lake Northern Wall Zone channel sample results compare favourably to Sons of Gwalia Limited’s Wodgina mine which is located in Western Australia. The Wodgina mine is a world-class tantalum-only producer containing 27 million tonnes averaging 420 g/t tantalum oxide.

Some objective links from around the web & Ontario Government (Geological Survey) about Fred Breaks:

Rare Element Pegmatites - North-Central Ontario - AVL Calculated Resources Estimate 2001 - 800,000 tonnes averaging 0.032 wt% Tantalum, 340,000 tonnes averaging 0.037 wt% Ta2O5 and 2.29 wt% Cs2O
http://www.mndm.gov.on.ca/mines/ogs/Posters/NWMMS_2005/Breaks_NNW_2005.pdf

Separation Lake and surrounding area has in recent years emerged as, if not the most, certainly among the most, important host to rare-element pegmatites in Ontario. The Separation Rapids pegmatite field (Figure 1), located where the English River forest access road crosses the English River near Separation Rapids, was first discovered in the 1993 field season by Fred Breaks of the Ontario Geological Survey (OGS).

http://goliath.ecnext.com/coms2/gi_0199-5903678/Agreement-Reached-to-Retire-Advance.html
However, it wasn't until the 1998 work by Dr. Fred Breaks of the OGS that the full implications of the discovery were realized. The Pakeagama Rare Metals pegmatite was the recent subject of a two year collaboration between Dr. Breaks of the OGS and Dr. Andy Tindle of The Open University in the United Kingdom. Their extensive documentation of the pegmatite depicted the second largest, complex type, petalite sub-type pegmatite in Ontario with highly anomalous to economically significant values of tantalum, cesium, rubidium, lithium, beryllium, niobium, tin, gallium, germanium and thallium.

http://www.mndm.gov.on.ca/mines/ogs/Posters/NWMMS_2005/Hall_NW_2005.pdf

http://mgmudrey.brinkster.net/Compressed/ILSG%2048%20Kenora%20field%20guide.CV.pdf

http://emg.geoscienceworld.org/cgi/content/abstract/14/1-4/1

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CLQ hanging around $0.15 - no significant newsflow - behind the scenes development I suppose?

WLC spiked up from $0.52 to $0.75 last week along banking optimism in the US tapering off to $0.67 today - in process of arranging $4.03 million financing and has a new IR firm. This is a solid group with capital and high profile industry connections (CEO used to run Jinshan Mining) - I fully expect TNR, CLQ, and WLC to be the ones to aim for if lithium starts getting more attention (and it has). Keeping in mind they'll likely want related parties to be supporting stocks lately so it hangs around $0.80 so there is a slight premium for the warrants! Good to buy on a drop to $0.60 as I expect it to bounce back to around $0.70 for PP appearance's sake.

Western Lithium arranges $4.03-million financing

2009-04-07 08:57 ET - News Release

Ms. Cindy Burnett reports

WESTERN LITHIUM ANNOUNCES $4 MILLION BROKERED PRIVATE PLACEMENT

Western Lithium Canada Corp. will be proceeding with a brokered private placement to raise $4.03-million by issuing up to 6.2 million units at a price of 65 cents per unit, plus an overallotment option of up to $1.04-million.

Each unit will comprise one common share and one-half of a common share purchase warrant. Each whole warrant will entitle the holder to purchase an additional common share for a period of 12 months at a price of 80 cents.

Western Lithium Canada Corp Symbol WLC Shares Issued 51,220,000 Close 2009-04-06 C$ 0.69 Recent Sedar Documents Western Lithium arranges $4.03-million financing 2009-04-07 08:57 ET - News Release Ms. Cindy Burnett reports WESTERN LITHIUM ANNOUNCES $4 MILLION BROKERED PRIVATE PLACEMENT Western Lithium Canada Corp. will be proceeding with a brokered private placement to raise $4.03-million by issuing up to 6.2 million units at a price of 65 cents per unit, plus an overallotment option of up to $1.04-million. Each unit will comprise one common share and one-half of a common share purchase warrant. Each whole warrant will entitle the holder to purchase an additional common share for a period of 12 months at a price of 80 cents. The company has engaged Haywood Securities Inc. to act as agent for the offering, and has agreed to pay Haywood a cash commission equal to 6 per cent of the gross proceeds of the private placement. The company will also issue to Haywood that number of agent's warrants as is equal to 6 per cent of the number of units sold. Each agent's warrant will entitle Haywood to purchase one common share for a price of 70 cents for a period of 12 months. All of the securities issued pursuant to the private placement will be subject to a hold period expiring four months and a day after the closing date. The closing of the sale of the units is expected to occur on or about April 30, 2009, and is subject to the approval of the TSX Venture Exchange. Proceeds of the private placement will be used to finance continuing engineering and development studies for the company's lithium project in Nevada, including additional drilling of the lithium deposit to conform to National Instrument 43-101 requirements. Proceeds will also go toward general corporate purposes. We seek Safe Harbor.

Will be interesting to see them drilling in Nevada for Lithim though!! That area is famed for easy-production of lithium brine (liquid form)!!

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China Vies to Be World’s Leader in Electric Cars

http://www.nytimes.com/2009/04/02/business/global/02electric.html?_r=1&em

TIANJIN, China — Chinese leaders have adopted a plan aimed at turning the country into one of the leading producers of hybrid and all-electric vehicles within three years, and making it the world leader in electric cars and buses after that.

The goal, which radiates from the very top of the Chinese government, suggests that Detroit’s Big Three, already struggling to stay alive, will face even stiffer foreign competition on the next field of automotive technology than they do today.

“China is well positioned to lead in this,” said David Tulauskas, director of China government policy at General Motors.

To some extent, China is making a virtue of a liability. It is behind the United States, Japan and other countries when it comes to making gas-powered vehicles, but by skipping the current technology, China hopes to get a jump on the next.

Japan is the market leader in hybrids today, which run on both electricity and gasoline, with cars like the Toyota Prius and Honda Insight. The United States has been a laggard in alternative vehicles. G.M.’s plug-in hybrid Chevrolet Volt is scheduled to go on sale next year, and will be assembled in Michigan using rechargeable batteries imported from LG in South Korea.

China’s intention, in addition to creating a world-leading industry that will produce jobs and exports, is to reduce urban pollution and decrease its dependence on oil, which comes from the Mideast and travels over sea routes controlled by the United States Navy.

But electric vehicles may do little to clear the country’s smog-darkened sky or curb its rapidly rising emissions of global warming gases. China gets three-fourths of its electricity from coal, which produces more soot and more greenhouse gases than other fuels.

A report by McKinsey & Company last autumn estimated that replacing a gasoline-powered car with a similar-size electric car in China would reduce greenhouse emissions by only 19 percent. It would reduce urban pollution, however, by shifting the source of smog from car exhaust pipes to power plants, which are often located outside cities.

Beyond manufacturing, subsidies of up to $8,800 are being offered to taxi fleets and local government agencies in 13 Chinese cities for each hybrid or all-electric vehicle they purchase. The state electricity grid has been ordered to set up electric car charging stations in Beijing, Shanghai and Tianjin.

______________________________________

Taken from Forbes last year
http://www.forbes.com/forbes/2008/1124/034.html

The lithium bonanza may just be starting. Lithium-ion batteries are integral to the automobile industry's plans to wean itself off fossil fuels. The hotly anticipated Chevrolet Volt, a plug-in hybrid car slated to debut in 2010, will use a lithium-ion battery alongside a 1.4-liter gas engine. Mercedes plans to roll out a hybrid version of its S-Class sedan in 2009 and will similarly rely on lithium-ion technology to produce superior mileage. Nissan (nasdaq: NSANY - news - people ) is working with NEC to mass-produce lithium-ion batteries for hybrids, in hopes of churning out 65,000 per year by 2010.

Since a vehicle battery requires a hundred times as much lithium carbonate as its laptop equivalent, the green-car revolution could make lithium one of the planet's most strategic commodities. The rush is on to find and develop new sources of it, a race that has mining companies scouring the globe's remotest corners, from the high-altitude deserts of Chile and Bolivia to the wilds of northern Tibet. The prospectors seem undeterred by the possibility that lithium's automotive heyday could be cut short by the cost and complexity of lithium-ion batteries. They prefer instead to focus on optimistic forecasts. Kevin McCarthy, a commodity chemicals analyst at Bank of America (nyse: BAC - news - people ), sees the potential for double-digit annual sales growth for lithium carbonate at least through 2012.

Such rosy short-term predictions have investors swooning over Sociedad Química y Minera de Chile S.A., or SQM, the Chilean fertilizer and mining company that produces nearly a third of the world's lithium carbonate and whose leather-skinned employees brave the Salar de Atacama for the sake of gadget lovers. In the past three years the Big Board-traded shares of SQM have climbed from $11 to $22. In the first six months of 2008 SQM reported a profit of $191 million, up 103% from a year earlier, on sales of $787 million, up 41%.

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Commodity of the future - Lithium? CLQ.v, WLC.v, MCI.v, TNR.v and more!?

Seems like junior miner TNR Gold Corp has been making alot of waves lately - getting on front page of retail investor central Stockhouse yesterday with their big announcement - acquisition of Lithium projects in ... Canada.

Hopefully that should mean alot more easier financing (read: flow through!) in this climate - lithium has been mentioned under people's breaths the last few months - even the likes of Warren Buffet, Doug Casey, and various writers have jumped on board.

As far as my limited market knowledge has told me, there's only 3 other TSX juniors that's announced lithium property acquisitions recently... let's compare some success factors that determine if a company makes a run or not!

1) Property Merit
2) Leadership
3) Network, other JV's, other companies involved?

Let's compare quickly.
TNR Gold Corp
Other than properties in Argentina and Alaska, seems like junir miner TNR has expanded into the wave of exciting green energy plays - lithium!
Management and leadership: Gary Schellenberg - quick Google reveals he is well known around industry. Bought out by De Beers in one previous deal Winspear Resources for $300+ million. Possibly other successes, but that's not a bad track record to have!
Also runs Coast Mountain Geological - group that consults for TSX miners around Vancouver, Bravo Ventures Group (BVG), Serengeti Resources (SIR), Barrick, NewCrest, and more (check CMG site) - very similar to Equity Engineering, SGS Lakefield, etc.

Bio here: Mr. Schellenberg has been managing and financing public and private resource based companies for the past 20 years. This experience provides the Company with leadership and well defined corporate goals.
Looks like he is a geologist with B.Sc. Geo background - reassuring thought that it's not some broker who cannot tell rock formation from non-sense that geologist is telling you! Good to see few of his clients have done quite well last few years especially Bravo! Fund manager John Lee from Mau Capital was very bullish on Serengeti (SIR.v) awhile ago as well.
Other properties? 2 Lithium properties in Ontario - famous for pegmatite and rare earth elements area. Sounds like some historic drilling had good grades, very promising. Would've been nicer with resource but it's a great start!
Los Azules - OH MY! This is quite the interesting project...Minera Andes 43-101 resource 11.2 billion pounds copper + 23 year mine life @ $0.85/lb production cost!!
Shotgun - 1 million ounces of gold
El Salto - large porphyry copper system in San Juan w/ perfect infrastructures!
El Tapau - Good copper grades 0.5% not to mention 1g/t grade Gold!
Batidero - Tenke / Paul Connibear / Lundin Group
Iliamna - next Pebble? - BHP Billiton transferred to TNR (always nice to get properties from majors!) --> lotsa point on network and

Suffice to say - we like the company. Competent management, good network, lots of institutional investors and big financial backers.

Mountain Capital (MCI.v)
In a hierarchy of legitimacy - MCI takes last place, easily. Their webpage does not even have any map or much details so far --> says Alberta Research Council indicated 2.8 billion lbs of Lithium?? New page seems to be up finally - at least there's a bit more property details and management info! Thin team and running low on cash...$200K and

We found out about the project through spam-blast from infamous Vancouver tech-guru Mr. R. Szeto's KREW Communications IR e-mail-blast-follow-up-call firm. . Not surprisingly the lack of news fell short and the pump is gone shortly after few weeks ago. It's now flat back to high single digits. Will it come back up with more oooomph next round of boiler room?

First the layoff of directors late 2008 ---> next repricing of 700,000 options to $0.05.
Next comes hiring of promo firm PaRaDox from Quebec... sounds very typical of an overly-promotional TSX firms. This is one strike.

Who's at helm - Blair Naughty - largely unknown name in junior mining it seems - quick Google test doesn't come up with much - from profile sounds like another broker-turned-opportunity-miner? I don't claim to be a geologist but I imagine things sell easier than the management group at least has a Geo degree or a P.Geo on hand?

Other properties of merit - Worst yet, other property was...Potash. Did someone miss the Raytec and fertilizer pump of 2008 summer? Seems like they have dropped those projects already, when will they drop lithium? No other mentions of their past BC Gold property - this group seems to treat lithium like a fad more than anything else ---> PASS!!

Canada Lithium (CLQ)

Formerly Black Pearl Mining - what happened there? Name change, dump rest of properties and promote new commodity for 2009?

Who's at helm CEO - Judy Baker
"Judy Baker, MBA has been President of Canada Lithium Corp. since September 27, 2007. Ms. Baker has fourteen years of experience in the mining and mineral exploration sector including equity analysis, fund management, exploration services and mining company experience. He served as Vice President, Business Development & Investor Relations of Nevsun Resources Ltd. Ms. Baker served as President of Southeast Asia Mining Corp. from February 5, 2008 to May 25, 2008 and served ... as its Consultant. Her prior experience includes Institutional Sales, Toll Cross Securities, Toronto, North American Business Manager, Quantec Geoscience, Toronto, and Resource Analyst, US Global Investors, San Antonio, Texas. She has been a Director of Canada Lithium Corp. since September 27, 2007 and Absolut Resources Corp. since June 26, 2006. Ms. Baker has an MBA from University of Western Ontario, and an Honours B.Sc. in Geological Engineering, Mineral Resources Exploration from Queen's University."
It's difficult finding fault on the academic excellence and history of this group's leadership, Ivey's a great school and seems like she went to a top engineering school for Exploration Geology. Curiously seems like she's done more analytical jobs like CFA's instead of field exploration work. Regardless I'm sure having been through so many different aspects of the business (buy/sell/exploration/brokerage) she might have a decent network of contacts.

Let's move onto the news flow and properties...Quebec Lithium previous operating mine..

"Quebec Lithium is a system of underground spodumene-rich dikes. The mine
was operated under the former Quebec Lithium Corporation as an underground
mine, surface concentration plant and refinery from 1955 to 1965, to produce
ceramic grade and chemical grade spodumene concentrates, lithium carbonate, lithium hydroxide monohydrate as well as a small quantity of lithium chloride and
feldspar. When mining operations were suspended, the proven ore reserve was stated to
be 15,612,300 tonnes at a grade of 1.14% Li2O calculated down to the 150 metre level in the proven, probable and possible categories. The reserve was
calculated using an 85% recovery rate and a 7% dilution factor. Over a period of
10 years of operation, the ore hoisted from underground works averaged a grade
of 1.25% of LiO2 against the composed 1.13%, derived from geological sections"
*Historical Reserves

Lets' be honest here, that property sounds reasonable! BLK's Other property includes a gold deposit @ Tully with 43-101 report. No major joint ventures and major investor group from sounds of it. I'd say this company sounds decent - if claims hold true and they could begin production? Note however it did take 10 years for them to define resource @ Tully... need a faster acting group!

Hold~

Western Lithium Corp (WLC)

A shell spin out from Western Uranium - this is the highest share price of the group at $0.55+.

Lotsa cash at $5 million, let's take a look at management.

Leadership
Mr. Chmelauskas was most recently President and CEO of Jinshan Gold Mines, Inc. In this position he successfully managed and led the company during all phases of the commissioning of one of China’s largest open pit gold mines. In addition to his considerable experience in the exploration, development, and mining industry, Jay has held key positions with companies in the chemical manufacturing industry, including Lead Analyst with Methanex Corporation where he was involved with a $250 million chemical plant expansion in Chile. His experience in both the chemical and mining industries is well suited to lead Western Lithium forward during the near term phases of development, product marketing and production.

Mr. Chmelauskas has a Bachelor of Applied Science in Geological Engineering, University of British Columbia and a Master of Business Administration, Queen’s University.

____
Jinshan has done a great job with properties in China - but I find it funny that Mr. Chmelauskas left Jinshan in the terrible month of October 2008. I guess leaving a company at its lowest stock price in years is an acceptable thing to do, provided it's better for your career to jump ship?

Optics are terrible about the timing, that's for sure! Will he leave Western Lithium if the money runs out??
Property at question - Chevron Resources began exploration for uranium in Nevada in the McDermitt Caldera area in 1975. In September 1977, the U.S. Geological Survey alerted Chevron to the presence of anomalous concentrations of lithium associated with volcaniclastic moat sediments within the caldera. Based on the information from the USGS, Chevron analyzed drill cuttings from rotary percussion drill holes drilled in 1977 in the moat sediments for lithium. One hundred and forty feet of hole number MJB-7-4 averaged 0.278% Li; eighty five feet of MJB-7-5 averaged 0.236% Li. These results confirmed the presence of significant lithium hosted by a massive, green claystone within the moat sediment section.

Reasonable sounding property - not that spectacular of result, however! Seems like they dropped all their other plays too? I'd put this slightly behind Canada Lithium. I have to say though the cash reserve is attractive!!

Hold~

Recessino to end in 2009! MAI.to, WLC.v

Helicopter Mr. Bernanke comes through for the market - 5 days of rally on the DOW/US markets - was the story all of last week, can it last? Would this end the commodity boom as we know it?

Of course not! If anything a slight recover will only make people realize that more money should be needed to access basic raw materials!
___

Depression Fears Subside on Bernanke Remarks, Rally in Stocks

March 16 (Bloomberg) -- The longest winning streak in U.S. stocks since November and reassuring comments from Federal Reserve Chairman Ben S. Bernanke are soothing concern that the U.S. is headed for its first depression in seven decades.

“The financial meltdown and accompanying depression scenario has been taken off the table,” said Jack Ablin, chief investment officer at Chicago-based Harris Private Bank, which oversees $60 billion. “The heart of the problem is the banking system, and news coming out of that sector suggests that we may have turned a corner.”

Banks from Citigroup Inc. and Bank of America Corp. to Barclays Plc indicated in the past week that earnings have been rising since the start of the year, and government data showed U.S. retail sales may be stabilizing after a six-month rout. With officials working on details of their bank-rescue plan, Bernanke said in an interview with CBS television’s 60 Minutes that the main risk is a shortage of political will to complete the task.

It will likely take some time before the worst is past for the U.S. job market, and bank losses on investments including commercial property and leveraged loans are still likely to rise, analysts said. Bernanke said last week it’s “well within the realm of possibility” that the unemployment rate will exceed 10 percent, a level unseen since 1983.

The Treasury this week intends to provide more information about a $1 trillion plan to remove distressed mortgage assets from banks’ balance sheets. The Fed also is scheduled this week to start the first phase of a $1 trillion program to revive the market for securities backed by consumer and business loans.

‘Mind Boggling’

Combining those two initiatives with the $787 billion fiscal stimulus, the magnitude of U.S. monetary and fiscal actions and their likely effects as they ripple through the economy are “mind-boggling,” said Gabriel Borenstein, managing director of global fixed income in New York at Jesup & Lamont Securities, a brokerage and investment banking firm.

The efforts “will not fail,” predicted Borenstein, who in June 2005 correctly forecast a “serious recession” ahead. “If that doesn’t work we’re going to turn into the Gobi Desert,” Borenstein said today.

The Standard & Poor’s 500 Stock Index gained 1.5 percent to 767.87 as of 12:23 p.m. in New York, boosting its advance over five trading days to 13.5 percent. The index hasn’t risen for five straight sessions since November.

Recession End

Bernanke reiterated in the interview that, should the government succeed in calming financial markets, the recession will probably end this year and the economy will expand in 2010. “Green shoots” are appearing in some markets aided by the Fed, and there has been “some improvement” in banks, he said.

The S&P Financials Index has soared 41 percent in six sessions as sentiment shifted on the outlook for the industry. At the same time, Fed officials have repeatedly voiced concern this year that losses will increase as commercial-property values decline.

Borrowers unable to pay their debts are also causing record losses for so-called collateralized loan obligations, a type of debt that packages loans that are below investment grade and slices them into securities of varying risk and return.

The S&P/LSTA U.S. Leveraged Loan 100 Index fell to 62.1 cents on the dollar at the end of last week from 100.3 cents in June 2007. The decline contributed to the $1.2 trillion of losses and writedowns by global financial institutions since the start of 2007.

‘Some Patience’

“Recovery is not going to happen until the financial markets and the banks are stabilized,” and the government’s plan is “going to take some patience. It’s going to take some support,” Bernanke said.

Bernanke’s comments signal he is prepared for criticism from lawmakers over any request for more aid to beleaguered financial companies, including additions to the $700 billion Troubled Asset Relief Program. Treasury Secretary Timothy Geithner said this month the U.S. bank-rescue plan may need another infusion of taxpayer money.

Senator Jim Bunning, a Kentucky Republican, voiced the skepticism of some lawmakers by telling Fed Vice Chairman Donald Kohn at a March 5 hearing that should regulators request “more money for more banks and more corporations” they “will get the biggest ‘No.’”

Bernanke said the October law creating the TARP prevented a possible “global financial meltdown” and that he told a skeptical congressman at the time that businesses in his district would begin suffering losses without decisive congressional action. He didn’t identify the lawmaker.

“We’ve averted” the risk of a depression, Bernanke said. “Now the problem is to get the thing working properly again.”

_________________________

Minera Andes had a nice jump today - then again who wouldn't after paying off $17 million dollars worth of loans on Mr. Goldcorp's private placement fund?

MINERA ANDES PAYS OFF OUTSTANDING MACQUARIE LOAN OF US$17.5 MILLION

Minera Andes Inc. has repaid in full the corporation's indebtedness to Macquarie Bank Ltd. of Australia. The total indebtedness was $17.5-million (U.S.), which consisted of a loan of $7.5-million (U.S.) due on or about March 7, 2009, and a loan of $10-million (U.S.) due in September, 2009. The corporation no longer has any bank debt.

With the repayment of the indebtedness to Macquarie and the payment of $11.3-million to satisfy the cash call made in respect of the corporation's 49-per-cent interest in the producing San Jose gold/silver mine operated by Minera Santa Cruz SA, the corporation has met its current financial obligations.

As previously reported in Stockwatch on Jan. 16, 2009, San Jose is forecast to produce approximately 7.5 million ounces of silver and 95,000 ounces of gold in 2009.

Allen V. Ambrose, president and chief executive officer of Minera Andes, said: "We are pleased to report that, with the completion of the private placements of $40-million from Rob McEwen, we have paid off our bank debt and cleaned up our balance sheet. With the company's financial condition improved, management will be able to focus on increasing shareholder value by increasing its exploration drilling activities on its high-potential 100-per-cent-owned prospects in the San Cruz province of southern Argentina."

The moneys for the payment of the cash call and repayment of the indebtedness to Macquarie were obtained by private placements with Mr. McEwen, a director of Minera Andes and the company's largest shareholder. Mr. McEwen purchased 40 million shares of Minera Andes for $40-million ($1 per share). The details of the private placements with Mr. McEwen have been the subject of previous Minera Andes news releases reported in Stockwatch on Feb. 9, 2006, Feb. 18, 2009, Feb. 19, 2009, Feb. 25, 2009, and Feb. 26, 2009.

Here are some trading ideas... Gold, TNR, MAI, WCL, Lithium, Green Energy, Uranium...

Fresh off the plane from a quick round at PDAC - I immediately knew what the investing world is going to look like in 2009 - resources & resources.

Keep in mind this is one of the world's largest gathering of resource/mining companies in the world - Rio Tinto, Goldcorp, Yamana, TECK Cominco, VALE, Inco, you name it - they will have a presence there.

Companies filled to the brim with cash and trading below cash values are all hunting for deals and properties with reserves - people were open minded about so-called pounds-in-the-ground. 

The cash we all know and currency system is rapidly failing us and the smart miners are once again ahead of the curve.

Let's take a quick glance at Gold today (see above) - up $30/ounce. Reason? Very simple: GM below $2 and bankrupcy fears - and Citibank is in danger of being delisted from NYSE - it dropped below $1 today. 

Stocks tumble as investors worry about banks, GM

Stocks resume steep slide as brief optimism fades amid lack of positive news

NEW YORK (AP) -- Investors fled Wall Street as fear grew about the stability of the nation's largest banks and worries mounted about General Motors Corp.

The major market indicators resumed their slide Thursday after a one-day rally, falling to levels not seen in more than a decade as investors contended with more disheartening economic data, new concerns about the stability of GM and ongoing uncertainty about the financial system. The Dow Jones industrial average fell more than 250 points, and the big indexes were all down more than 3 percent.

Stocks fell across the board, with the beleaguere banking sector posting some of the steepest losses. Shares of Citigroup Inc., still shaky despite receiving billions in government aid, at times sank below $1. General Motors, meanwhile, dropped below $2 as it warned of possible bankruptcy.

The market is also extremely anxious ahead of Friday's February Labor Department report that is likely to show the loss of hundreds of thousands of jobs. Even some positive news, including some better-than-expected retail sales and factory orders, was not enough to stoke investor confidence.

The reports failed to show a significant improvement and so the market gave back its big gain from Wednesday, said Doreen Mogavero, president of brokerage Mogavero, Lee & Co.

"The economic data is still obviously a huge worry," she said. "I don't think anyone thinks we're in the clear because the market was up yesterday."

But beyond the bad economic data, investors who had placed their hopes in the Obama administration to pull the country out of recession are worried that Washington's efforts will fall short.

"Everyone knows that the economy is bad, so I don't think that's the problem here," said Eric Ross, director of U.S. research at brokerage Canaccord Adams. "The government clearly doesn't have a solution."

TNR Gold Corp announced excellent overall update plans and things look bright for creative juniors - now is definitely survival of the fittest. 

Goldcorp's McEwan puts up more money for Minera Andes, closing rest of the $40 million private placement at $1/share now (instead of initial $0.33) - MAI jumps. 

I think there's a strong possibility he will find out more about junior miner TNR GOLD CORP and acquire it for a tidy $5 million or so, would be interesting if majority shareholder group in TNR will allow that to happen?? 

After all, 1/8 of $497 million NPV is not bad for a company trading at 77 million shares outstanding at $0.06 - that's only a mere $4.62 million market cap! We haven't even factored the rest of the Alaskan projects into account and El Salto/Tapau , etc!

________________

The Hunt for Green and Sustainable Energy

TBA

McEwen, Goldcorp Founder, Bets Crisis Will Drive Gold to $5,000 - MAI, TNR, GG, AUY, Kinross

If you're reading this blog - the picture to the left of fireworks should be what you're going through right now...

Gold is back at $1,000/ounce. The mental barrier has been broken.

The New Promise, President Obama (as great as he is, one man can only do so much against decades of capitalism inflationary forces!), and various bailout attempts - has so far sputtered.

What would you rather believe in, printed paper or physical currency?

______________________________

Feb. 11 (Bloomberg) -- Goldcorp Inc. founder Rob McEwen, who has more than $100 million in gold investments, said he expects the metal to top $5,000 an ounce as governments increase the money supply to combat recession.

Bullion will more than double to $2,000 an ounce by the end of next year before rising to McEwen’s target by the end of the cycle, which could take an additional four years, the investor said.

“Politicians around the world are listening to cries from their electorates and they’re giving money to all callers,” McEwen said yesterday in a telephone interview from Toronto.

McEwen, who founded what is now the world’s second-largest gold producer by market value, owns stakes in three Canadian precious-metal explorers worth more than $100 million. He said he also has a “big, big” holding in bullion. Gold gained for the eighth straight year in 2008 amid investor concern the economy would collapse and government efforts to prevent that would increase inflation.

Gold futures for April delivery rose $29.10, or 3.2 percent, to $943.30 an ounce at 11:51 a.m. on the Comex division of the New York Mercantile Exchange, the highest for a most-active contract since July 23. The metal climbed to a record $1,033.90 on March 17.

McEwen said he started buying bullion in August 2007, at the beginning of the subprime mortgage crisis. Gold has jumped 40 percent since Aug. 1 of that year, touching a high of $948.20 today, while the Standard & Poor’s 500 Index has dropped 43 percent.

“I realized we had reached an inflection point regarding money,” McEwen said. “It was all about protecting money, and gold served that purpose.”

McEwen is the largest shareholder in Lakewood, Colorado- based U.S. Gold Corp., Vancouver-based Rubicon Minerals Corp. and Spokane, Washington-based Minera Andes Inc. Vancouver-based Goldcorp is the world largest gold producer by market value after Toronto-based Barrick Gold Corp.

TNR Gold Corp is associated with Minera Andes through Xstrata's optioned Los Azules property, which came through with a positive prelimenary assessment recently of:

-23.6 years mine life

-production cost of $0.85 copper

-43-101 resource of 11.2 billion lbs of copper

__________________________________________________

Remember CitiGroup? Of course you do... but guess what, CitiBank and its various associated companies are in danger of being Nationalized.

NATIONALIZED? Yes, as in shareholder equity wiped - government operated.

Think Washington Mutual (pictured left) and how it was "too big to be let go". I am really hoping this doesn't happen, but things like this tend to really change people's perception of wealth.

Bank of America is being rumored to be in the same position. I wouldn't doubt it - after acquiring Countrywide and Merrill Lynch - BAC has fallen back drastically from $32/share - when Warren Buffet recommended a huge buy.

NEW YORK (Reuters) – Shares of Citigroup and Bank of America fell in premarket trade on Friday on the fear that the banks would be nationalized, according to traders.

"There's that fear that we nationalize banks and this market gets killed," said Matt McCall, president of Penn Financial Group in Ridgewood, New Jersey

Citigroup slid 5.2 percent while Bank of America lost 5.9 percent.

The Frankfurt-listed shares of the banks also fell, with traders and analysts citing fears that big U.S. banks could be nationalized.

______________________

Really, its time to examine your perception of reality and what constitutes real savings at this point! Thanks for reading.

$40 million for 40 million shares!

Must be nice having this kind of backer!! From adjusted $0.33/share to $1/share.

Minera Andes (MAI) is up on the TSX today and closed at $0.75 from $0.35 the day before.

Minera Andes announces revised C$40.0 million private placement with Robert R. McEwen at a subscription price of C$1.00
Tuesday February 17, 8:19 am ET

    TSX: MAI
  NASD-OTCBB: MNEAF

SPOKANE, WA, Feb. 17 /PRNewswire-FirstCall/ - Minera Andes Inc. (the "Corporation" or "Minera Andes", TSX:MAI and US OTC:MNEAF) announced today that it has agreed with Robert R. McEwen, a director and existing shareholder of the Corporation, to amend the terms of the private placement with Mr. McEwen, as first announced on February 9, 2009.

Mr. McEwen has agreed to complete the private placement in a two step transaction designed to alleviate the Corporation's immediate financial pressures. First, Mr. McEwen will purchase 18,299,970 common shares of the Corporation at a price of C$1.00 per share for proceeds to the Corporation of C$18,299,970 which will be used, as to $US11.3 million, to satisfy the cash call made in respect of the Corporation's 49% interest in the San Jose Project ("Step 1"). Second, Mr. McEwen will assume the bank loan owing by the Corporation to Macquarie Bank Limited ("Macquarie") in the aggregate principal amount of US$17.5 million ("Step 2"). The subscription price of C$1.00 per share represents a 108% premium to the closing price of Minera Andes' common shares on the TSX on February 13, 2009 of C$0.48 per share.

In order to initiate the transfer of funds to Argentina for the cash call by February 20, 2009, Step 1 is to be completed by the close of business in Toronto on February 18, 2009.

The Step 2 assignment of the Corporation's bank loan from Macquarie to Mr. McEwen, is subject to Mr. McEwen reaching agreement with Macquarie, and Macquarie has already indicated its agreement to this. The security for the bank loan also has to be transferred to Mr. McEwen, and Step 2 requires Hochschild Mining plc ("Hochschild") consenting to the transfer of the security in the San Jose Project from Macquarie to Mr. McEwen. If agreement is not reached with either or both of Macquarie and Hochschild by the close of business (Toronto time) on February 25, 2009, Mr. McEwen will purchase a total of 21,700,030 common shares of the Corporation at a price of C$1.00 per share and the Corporation will use the proceeds thereof to repay Macquarie directly.

The bank loan, once assumed by Mr. McEwen, will be convertible at the option of Mr. McEwen into common shares of the Corporation at a price of C$1.00 per share (for a total of 21,700,030 common shares), at any time, subject to approval by the shareholders of the Corporation. If such shareholder approval is not obtained by 60 days after closing, the bank loan (as assumed by Mr. McEwen) will be due and payable by the Corporation 15 business days after the date of the shareholders' meeting.

In addition, if prior to such shareholder approval being obtained there is a change of control of the Corporation, involving a person other than Mr. McEwen or one his affiliates, the bank loan (as assumed by Mr. McEwen) will be immediately converted into common shares of the Corporation at a price of C$1.00 per share (for a total of 21,700,030 common shares).

Step 1 and Step 2 of the transaction with Mr. McEwen are subject to the approval of the TSX.

Mr. McEwen will not demand repayment of any amounts under the bank loan (including the sum of US$7.5 million which is currently due on or about March 7, 2009) prior to the receipt of shareholders approval or, failing such approval, 15 business days after the date of the shareholders' meeting convened to obtain such approval. In addition, Mr. McEwen has agreed to waive all existing events of default under the Macquarie credit agreement.

Mr. McEwen has also confirmed that the Corporation may complete an offering of common shares on similar terms as the proposed transaction with Mr. McEwen for the purpose of funding its exploration activities.

Step 1 and Step 2 are intended to improve the Corporation's financial situation and provide shareholders the opportunity to approve the issuance of shares to Mr. McEwen, where time permits such approval to be sought, without a material adverse effect on the financial condition of the Corporation.

On February 9, 2009, the Company announced that it had entered into a letter agreement with Mr. McEwen pursuant to which Mr. McEwen or his affiliates would purchase 121,212,121 common shares of the Corporation at a price of C$0.33 per share (the closing price of the Company's common shares on the TSX on February 4, 2009), for proceeds of C$40.0 million.

Subsequent to that announcement, the Corporation received advice from Hochschild that it was prepared to make a formal bid to acquire all of the issued and outstanding shares of the Corporation at an exchange ratio of 0.24 ordinary shares of Hochschild (which is listed on the London Stock Exchange) for each common share of the Corporation. Based on the closing price of Hochschild's shares and the Corporation's shares on February 15, 2009 this bid, if made would have an implied price of C$0.8658 per common share of the Corporation. Hochschild is not currently listed on any Canadian stock market so any bid if made, could not be made until at least April 2009, at which time the requisite technical reports in respect of Hochschild's material properties are scheduled to be completed.

Hochschild indicated that it would (i) provide bridge financing to the San Jose project so that the payment of the outstanding cash call by MAI could be deferred until expiry of the formal bid by Hochschild; and (ii) make a loan available to the Corporation in the principal amount of US$17.5 million so that the Corporation could repay its indebtedness to Macquarie and that the maturity date of such loan would effectively be extended until December 1, 2009, provided in each case, among other things, that the Corporation would immediately express support for any such bid by Hochschild and negotiate the terms of a definitive support agreement for the making of any such bid (with a view to settling the terms of such agreement by February 26, 2009). The proposal from Hochschild also provides that any such financial assistance shall be immediately due and payable upon the Corporation supporting an alternative transaction.

    The Special Committee, together with its advisors, considered the
Hochschild proposal for a bid some time after April 2009 and financial
assistance and concluded that the proposed transaction with Mr. McEwen is in
the best interests of shareholders. In reaching this conclusion, the Special
Committee considered, without limitation, the following factors:

  -   the implied price of the proposed Hochschild bid, if made, is
      inferior to the price offered by Mr. McEwen;
  -   the financial assistance offered by Hochschild is expressly
      conditional upon the Corporation negotiating the terms of a support
      agreement (the proposed material terms of which are unknown) and
      failing which the proposed transaction with Mr. McEwen will have been
      withdrawn and the Corporation will again be subject to untenable
      financial pressure;
  -   the proposed Hochschild bid, if made, will be based on an exchange
      ratio determined today, however any bid made by Hochschild cannot be
      made until April 2009 at the earliest;
  -   the possibility that financial assistance provided by Hochschild
      would become immediately due and payable upon a competing proposal
      supported by the Corporation is coercive and
  -   the proposed transaction with Mr. McEwen does not prevent a
      subsequent transaction with Hochschild or any other third party and
      its effect on the Corporation's financial condition should enable the
      Corporation to vigorously negotiate the terms of any such proposal
      without the pressures of financial hardship.

Mr. McEwen presently owns, or exercises control or direction over, 46,057,143 common shares, or 24.3% of the issued and outstanding common shares. The issuance of 18,299,970 common shares to Mr. McEwen under Step 1 will result in Mr. McEwen owning or exercising control or direction over approximately 30.9% of the then issued and outstanding common shares of the Corporation. The issuance of 21,700,030 common shares under Step 2 will result in Mr. McEwen owning or exercising control or direction over approximately 37.4% of the then issued and outstanding common shares of the Corporation.

Under the TSX Company Manual, shareholder approval would be required as a result of the fact that together Step 1 and Step 2 will result in greater than 10% of the outstanding common shares of the Corporation being issued to an insider of the Corporation.

The Corporation applied to the Toronto Stock Exchange (the "TSX") under the provisions of Section 604(e) of the TSX Company Manual for an exemption from securityholder approval requirements in respect of the issue of 40,000,000 common shares to Mr. McEwen at a price of C$1.00 per share on the basis that the Corporation is in serious financial difficulty, in each in the circumstances described above The members of the Special Committee of the Corporation's Board of Directors, Allan Marter, Donald Quick and Victor Lazarovici (each of whom is free from any interest in the offering), authorized such application concluding, each time, that the Corporation is in serious financial difficulty as a result of the cash call for the San Jose Project and the outstanding bank indebtedness, and the transactions with Mr. McEwen are reasonable for the Corporation under the circumstances.

With its financial condition improved, the Special Committee believes the Corporation will be in a position to undertake a review of the options available to it for the medium and longer-term. At present, the Special Committee believes that the Corporation's ability to obtain maximum value for its shareholders is limited and constrained by financial distress caused by the cash call due imminently and the bank loan which may be called upon seven days notice.

As a result of its previous announcement concerning the private placement with Mr. McEwen, the TSX has advised that it has initiated a de-listing review of the Corporation as a consequence of relying on the financial hardship exemption under Section 604(e). The Corporation believes that, upon completion of the private placement, it will be in compliance with all of the TSX listing requirements.

The transactions described above with Mr. McEwen will also be a related party transaction for the purposes of Multilateral Instrument 61-101 Protection of Minority Shareholders in Special Transactions. It is the intention of the Corporation to avail itself of certain exemptions set out in such Instrument from provisions that would otherwise require the Corporation to obtain a formal valuation and the approval of its minority shareholders in connection with the private placement.

Minera Andes is a gold, silver and copper exploration company working in Argentina. The Corporation holds approximately 304,000 acres of mineral exploration land in Argentina. Minera Andes holds a 49% interest in the San Jose Project, an operating gold and silver mine. Minera Andes is also exploring the Los Azules copper project in San Juan province, where an exploration program has defined a resource and a preliminary assessment has been completed. Other exploration properties, primarily silver and gold, are being evaluated in southern Argentina. The Corporation presently has 190,158,851 shares issued and outstanding.

This news release is submitted by Allan J. Marter, a Director and the Chairman of the Special Committee of the Board of Directors of Minera Andes Inc.

Caution Concerning Forward-Looking Statements:

This press release contains certain forward-looking statement and information. The forward-looking statements and information express, as at the date of this press release, the Corporation's plans, estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. In particular, there can be no assurance that financing will be secured within the time required. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuations in the market price of precious metals, mining industry risks, risks associated with foreign operations, the state of the capital markets, environmental risks and hazards, uncertainty as to calculation of mineral reserves and other risks.