Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Stock in both US Gold Corporation (NYSE:UXG)(TSX:UXG) and Minera Andes Inc. (TSX:MAI) charged ahead more than 7% in morning trade on Friday after announcing that their respective shareholders voted in favour of a proposed business combination.
The new entity will be renamed McEwen Mining: “I am thrilled that the proposed merger was overwhelmingly favoured by shareholders of Minera Andes and US Gold! This brings us one step closer to qualifying for the S&P 500. We look forward to future growth and prosperity this combination creates.” said Rob McEwen, CEO and largest shareholder of US Gold and Minera Andes.
The companies anticipate that the transaction will become effective on or about January 24, 2012, and shares of McEwen Mining be expected to commence trading on the Toronto Stock Exchange (“TSX”) and the New York Stock Exchange (“NYSE”) under the symbol “MUX” on or about January 27, 2012 concurrently with the commencement of trading on the TSX of the exchangeable shares of McEwen Mining – Minera Andes Acquisition Corp. to be received by Minera Andes shareholders under the symbol “MAQ”. Upon closing of the transaction, McEwen Mining will have an aggregate of 267,084,203 shares of common stock outstanding and issuable upon the exchange of exchangeable shares.
US Gold explores for gold and silver in the Americas and is advancing its El Gallo Project in Mexico and its Gold Bar Project in Nevada towards production. US Gold’s shares are listed on the NYSE and the TSX under the symbol UXG, trading 2.9 million shares daily during the past twelve months. US Gold’s shares are included in S&P/TSX and Russell indices and Van Eck’s Junior Gold Miners ETF. Rob McEwen, Chairman and CEO, owns 20% of the shares of US Gold.
Minera Andes is an exploration company exploring for gold, silver and copper in Argentina with three significant assets: One, a 49% interest in Minera Santa Cruz SA, owner of the San Jose Mine that is located near Goldcorp’s Cerro Negro project; Two, 100% ownership of the Los Azules copper deposit; Three, 100% ownership of a large portfolio of exploration properties in Santa Cruz province, Argentina, including properties bordering the Cerro Negro project. Minera Andes had $45 million USD in cash as at September 30, 2011 with no bank debt. Rob McEwen, Chairman and CEO, owns 30% of the shares of Minera Andes.
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evans
My name is Mr. Evans Danful a miner of kwalaska mining enterprise and deem it a
great pleasure to give to you and your organization a proposal of investment and partnership or buy land from our organization
in gold mining. there is the availability of gold lands and registered under the minerals commission of the nation. we write to call upon your organization to locate a branch, individual & companys can bring in there machine to start mining
under the permission of my enterprise will take land money when u start operation. contact>
[email protected]
00233 244970210