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  • TNR Gold: Los Azules Litigation: McEwen Mining Cautions Shareholders At Annual General Meeting TNR.v, MUX 0 comments
    May 19, 2012 8:32 AM | about stocks: TRRXF, MUX, GALXF, RDNAF, OROCF, LITHF, TLTHF, FMC, ROC, LIT, MCP, REE, F, TM, GM, NSANF, DOW, AONEQ, JCI, IBM, BASFY, FCX, RIO, BHP, TCK, SSNLF, TSLA, ZIP, VALE, BYDDY, POT, ALLRF, MOS, SOIL, IPI, NPTH, PPRTF

    Note: we are not sure that this particular Judge will be involved in this court hearing.

    Disclaimer (loosely based on investment bankers' small print): please read our full disclaimer, nothing on this website or any links provided should be relied upon in any way and nobody will accept any responsibility in any case.

    Now we have more information on Los Azules valuation from McEwen Mining AGM, which was held in Toronto yesterday.

    McEwen Mining AGM presentation.

    Los Azules is presented from page 22.

    Los Azules vs Undeveloped Copper Deposits:

    Grade - 2nd

    Annual Production - 5th

    Mine Life - 6th

    Resource Size - 7th

    Page 24 present the map of Los Azules with clear indication of TNR Gold contested property, where the majority of high grade core with Cut off grade 0.7% is located.

    Page 27. Los Azules - Comparable Copper Projects Sold - Average Value/lb CuEq - $0.05

    This indication will put Los Azules valuation with 12.5 b lb of Cu Eq to $625 million.

     

    McEwen Mining Cautions Shareholders at Annual General Meeting

     

    TNR Gold: McEwen Mining considers divestiture, JV of Los Azules, executive says by Matt Whittaker in New York TNR.v, MUX

    "Now we have some valuations for Los Azules from McEwen Mining to digest - we think, that suggested USD 300 million will be the lowest valuation now, provided in order not to increase TNR Gold appetite.

    "However, he cited other recent sales of copper porphyry assets similar to Los Azules that were completed for USD 5 cents per pound." - This benchmark will put valuation for Los Azules at USD 625 million."

    Merger market:

    McEwen Mining considers divestiture, JV of Los Azules, executive says by Matt Whittaker in New York
    May 15, 2012

    McEwen Mining (TSX: MUX, NYSE: MUX) plans to divest or joint-venture its Argentinean copper asset once ownership of the disputed project is resolved next year, said senior vice president Ian Ball on the sidelines of the New York Hard Assets Investment Conference this week.

    The Toronto-based company is currently involved in litigation with TNR Gold (CVE:TNR), a Vancouver-based junior miner that is challenging title to the northern half of Los Azules. TNR is seeking, among other things, recognition of a right to a 25% interest in the property.

    Separately, the roughly CAD 10m market capitalized TNR has said it has received an unsolicited merger proposal from a third party.

    A trial in British Columbia regarding the Los Azules property is set to commence in November and is expected to last for approximately six weeks. McEwen is confident in a ruling that will allow the company to keep all of the property, said Ball.

    The executive previously told attendees that McEwen will not build the mine itself given the steep capital costs of developing the property. On Tuesday, Ball noted that McEwen would seek either a joint venture with an up- front cash portion or an outright sale of the asset after the legal proceedings are completed. Capital costs are estimated to be USD 3.7bn over the life of the mine, with an accuracy target of plus or minus 35%, according to company documents.

    When asked what Los Azules could fetch in a sale, Ball said it could be roughly a USD 300m divestiture, using conservative assumptions of USD 2 cents per pound of copper. However, he cited other recent sales of copper porphyry assets similar to Los Azules that were completed for USD 5 cents per pound.

    McEwen lists the carrying value of the Los Azules project of roughly USD 486m. The property has a mineral resource of 10.3bn pounds of inferred copper and 2.2bn pounds of indicated copper.

    Assuming the court case is resolved in the 1Q13, McEwen will explore options for either a joint venture or a sale in 2Q13 for the project, Ball noted. If the company decides on a sale, it will run an auction process for Los Azules, he said, adding that the company has not yet retained an advisor.

    McEwen Mining was formed through the merger of Minera Andes and US Gold. The USD 646m transaction was completed in January.

    In a February interview, McEwen CEO, Rob McEwen, told this news service that the company was considering a joint venture partner, among other options, for Los Azules. Companies with an interest in copper mining could be potential partners, he noted. The CEO said a data room had been set up but had not been opened and confidentiality agreements had not been signed. He noted the company was "still exploring" its options."

     

    TNR Gold Receives Third Party Proposal and Provides Los Azules Project Update TNR.v

    (click to enlarge)

    TNR Gold Corp. Presentation.

    (click to enlarge)

    Reuters:

     

    TNR Gold Receives Third Party Proposal and Provides Los Azules Project Update

    Fri May 11, 2012 8:25pm EDT

    VANCOUVER, BRITISH COLUMBIA, May 11 (MARKET WIRE) -- TNR Gold Corp. (the "Company") (TSX VENTURE:TNR) has received an unsolicited proposal from a third party to merge with TNR and to acquire TNR's wholly owned subsidiary Compania Minera Solitario Argentina S.A. ("Solitario"). The Company has called a meeting of the TNR Board of Directors to determine whether the proposal is sufficiently attractive to commence exclusive negotiations with the third party, and also to consider its other strategic alternatives. TNR and Solitario are currently in litigation with Minera Andes Inc. (and indirect subsidiary of McEwen Mining Inc.) and MIM Argentina Exploraciones S.A. The litigation (the "Los Azules Litigation") involves a challenge to title to a substantial portion of the mineral properties constituting the Los Azules Project in San Juan Province of Argentina. Specifically, TNR is challenging the title of Minera Andes Inc. and certain of its subsidiaries to the mineral properties constituting the northern half of the Los Azules project (the "Solitario Properties"). TNR is seeking return to it of a 100% interest in the Solitario Properties or damages; and, effectively, in the alternative, recognition of TNR's right to back-in to a 25% interest in the properties; together with recognition of TNR's interest in the related Escorpio IV property. A trial in the Courts of British Columbia is set to commence in November, 2012 and last for approximately six weeks. McEwen Mining is continuing a significant expansion drilling program at Los Azules, but has announced that it is focusing, and will continue to focus, its exploration efforts on the portion of the Los Azules mineral claims that are not subject to the ongoing litigation. Kirill Klip, Chairman of TNR commented that: "The Los Azules project is considered to represent one of the largest undeveloped copper projects in the world but the current legal uncertainty over its legal ownership is detracting from the value of the project for shareholders of both TNR and McEwen Mining. The third party proposal which we have received to purchase TNR, together with the fact that McEwen Mining has decided to limit its drilling activity to non-disputed mineral claims only are further validation of the value of TNR, its title claims and its prospects for success in the upcoming Los Azules litigation." The Los Azules Project is located in western San Juan Province within a belt of porphyry copper deposits that straddles the Chilean/Argentine border. This belt contains some of the world's largest copper deposits, including Codelco's El Teniente and Andina mines, Anglo American's Los Bronces mine, Antofagasta PLC's Los Pelambres mine and Xstrata's El Pachon project, among others. Shareholders and other interested parties are invited to review the Court filings relating to the Los Azules Litigation which are available from the BC Supreme Court registry database (BC Online) and are hosted on TNR's webpage at tnrgoldcorp.com/s/LosAzules.asp. ABOUT TNR GOLD CORP. Over the past twenty-one years TNR, through its lead generator business model, has been successful in generating high quality exploration projects around the globe. With the Company's expertise, resources and industry network, it is well positioned to aggressively identify, source, explore, partner and continue to expand its project portfolio. TNR's recently listed subsidiary, International Lithium Corp. (TSX VENTURE:ILC), demonstrated the successful application of TNR's business model in which TNR shareholders benefited from a unit distribution upon spin-out of TNR's lithium and rare metals projects. TNR remains a large shareholder in ILC at 25.5% of outstanding shares. At its core, TNR provides significant exposure to gold and copper through its holdings in Alaska and Argentina; and teamed with the recent acquisitions of rare-earth elements and iron ore projects in Canada confirm TNR's commitment to continued generation of in-demand projects, while diversifying its markets and building shareholder value. On behalf of the board, Gary Schellenberg, President - TNR Gold Corp. Statements in this press release other than purely historical information, historical estimates should not be relied upon, including statements relating to the Company's future plans and objectives or expected results, are forward-looking statements. News release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements. In particular, there are no assurances that the third party proposal recently received by the Company will develop into a formal offer for the Company, or that any such formal offer would be attractive to, or result in the sae of, the Company. There are no assurances that the Company will decide to commence a formal sale process or that, if commenced, such sale process would result in an attractive offer and sale of the Company. There are no assurances that the Company will achieve a favourable outcome in the Los Azules litigation. CUSIP: #87260X 109 SEC 12g3-2(b): Exemption #82-4434 Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Contacts: TNR Gold Corp. Gary Schellenberg President (604) 687-7551 or 1-800-667-4470 (604) 687-4670 (FAX) info@tnrgoldcorp.com www.tnrgoldcorp.com"

    TNR Gold Vs. McEwen Mining:

    Los Azules

    "World's Sixth Largest Undeveloped Copper Deposit"

     

    TNR Gold litigation on Los Azules Copper Project - MCEWEN MINING EXPANSION DRILLING INTERSECTS 0.53% COPPER OVER 351 METERS TNR.v


    Thursday, May 10,2012

    Note: we are not sure that this particular Judge will be involved in this court hearing.

    Disclaimer (loosely based on investment bankers' small print): please read our full disclaimer, nothing on this website or any links provided should be relied upon in any way and nobody will accept any responsibility in any case.

    We are very pleased to see this development: acknowledgement of the ongoing litigation, its risks, property involved and proper representation of all necessary information for the shareholders. Annual General Meeting to be held by McEwen Mining on Thursday May 17, 2012 at 4:00 will provide a good opportunity to ask all questions about this developing story with "World's Sixth Largest Undeveloped Copper Deposit" - as Rob McEwen has called it.

    McEwen Mining reports:

    "A total of 2,835 meters were drilled this season in eight holes. A drill hole location map, a table of assay results and a cross section of the Los Azules resource are provided in Exhibits 1, 2 and 3. All of the drill holes from this season were completed on mineral claims that are not subject to ongoing litigation."

    MCEWEN MINING EXPANSION DRILLING INTERSECTS 0.53% COPPER OVER 351 METERS AT THE LOS AZULES PROJECT

    Page 5 provides, finally, McEwen Mining map outlining High Grade Core Copper Zone on TNR Gold's former properties called "100% Held mineral rights (subject to litigation) and surface ownership".

     

    TNR Gold litigation on Los Azules Copper Project, Argentina - Form 10-Q for MCEWEN MINING INC. TNR.v

    TNR Gold's Gary Schellenberg Discusses Gold Mining in Alaska and Los Azules Copper Project on Midas Letter Money TNR.v

    Public Court Documents on Los Azules litigation

    Update February 12th, 2012. CNNMoney:

     

    $1.7M of MUX sold by Allen Ambrose


    We guess, that at some stage Mr Allen Ambrose - former CEO of Minera Andes, will be questioned during the Los Azules litigation on what exactly were his intentions explained in his emails presented by TNR Gold litigation counsel in Amended Claim.

    Allen Ambrose emails:

    24. "Next we should look at our alternatives to take out the Solitario (TNR Gold - S) agreement..."TNR Gold vs Minera Andes (McEwen Mining now) and MIM (Xstrata now). From Page 11 Part 3: Legal Basis http://bit.ly/xhdqag

     

    Los Azules: Gold bug McEwen eyes big copper play - TNR Gold claims Northern Part of the project back

    Mcewen Mining: SEC filing: ITEM 1A. Risk Factors

    "The Los Azules copper project is subject to ongoing legal proceedings with the potential that we may lose all or part of our interest in the project.

    TNR Gold presentation with Maps of Los Azules.

    Please, do not forget, that we own stocks we are writing about and have position in these companies. We are not providing any investment advise on this blog and there is no solicitation to buy or sell any particular company here. Always consult with your qualified financial adviser before making any investment decisions.

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