Minera Andes (MAI.to) and US Gold (UXG): Toldyaz

On July 14th while commenting on the proposed 1-to-0.4 ego-driven pure paper merger of Minera Andes (MAI.to) and US Gold (UXG), your author commented (amongst other ranterations):

"If I were a long time supporter and holder of MAI.to I'd be hopping mad today."

...and also...

"...0.4 shares of UXG is an insult!"

Today we have a NR update on the process and we have this excerpted:

"Based upon the input of their independent financial advisors, each special committee has directed its legal counsel to continue due diligence and begin negotiation of binding transaction agreements at a ratio of 0.45 of a US Gold common share for each 1.0 Minera Andes common share held.   This is a change from the exchange ratio of 0.40 of a US Gold common share for each 1.0 Minera Andes share originally proposed by Mr. McEwen."

This still isn't that great, but at least it recognizes that Rob McEwen was trying to pull a fast one on holders of MAI.to. Anyway, I think I can say "toldyaso" on this one, even if MAI.to is still being sold halfway down the river.

disclosure: no position in either

McEwen Mining! May I suggest EGO.to as the ticker symbol?

So we now know why Minera Andes (MAI.to) tanked 10% yesterday Monday, as word must have leaked out to the inside trading scumballs in Canada about Rob McEwen's latest brainwave. Here's how today's NR kicks off, click through for more:

Press Release Source: US Gold Corporation and Minera Andes Inc. On Tuesday June 14, 2011, 8:00 am EDT

TORONTO, ONTARIO--(Marketwire - 06/14/11) - US Gold Corporation (NYSE:UXG - News)(TSX:UXG - News) and Minera Andes Inc. (TSX:MAI - News)(OTC.BB:MNEAF - News) announce that Rob McEwen, Chairman, CEO, and largest shareholder of both companies has proposed to combine these companies to create a high growth, low-cost, mid-tier silver producer focused in the Americas. Mr. McEwen's investment in the combined company (market close on June 13, 2011) would be approximately US$ 345 million. CONTINUES HERE

And the cherry on the cake? If (when) this deal goes through, the newly fused company gets to be called "McEwen Mining Inc", which caused me to wipe coffee off my nice new computer screen this morning.

If I were a long time supporter and holder of MAI.to I'd be hopping mad today. Because of McEwen's desire to "do something" and "take initiative" and "be innovative", MAI.to holders are faced with the future of seeing their valuable producing asset at San José, very good looking prospects around the area and the spin-out bonus of Los Azules be diluted to kingdom come by the pisspoor track record of gold exploration at US Gold (UXG), which to date has only found one decent silver prospect (the gold assets currently at UXG ain't never gonna happen) at El Gallo Mexico (i.e. for "US Gold" please read "Mexico Silver") that's already valued up to the hilt. Sadly for MAI.to longs, it's going to be very difficult to stop McEwen from applying the KY Jelly because as he owns 31% of shares and will be able to mesmerize enough of his faithful flock into believing this deal is good for them and not just his own ego the majority vote will be easy for him to reach.

0.4 shares of UXG is an insult! ForCryinOutLoud, HOC.L could offer a better deal than this. In fact, thinking about it, that might just happen....

US Gold (UXG): A free fundamentals report

In the July 11th edition of The IKN Weekly (IKN62) we ran a 'NOBS' fundamental analysis report on US Gold (UXG), the junior run by Rob McEwen with the 'El Gallo' silver project in Mexico and several gold assets in Nevada USA, including its most advanced 'Gold Bar' property. We looked at those two main projects but we also took a good look at the company financials, structure etc to determine if UXG offered value as an investment right now.

So today IKN and its humble scribe is offering the July 11th report on UXG as a free download for any non-subscribers interested in this stock. Click here and download your copy. Have a nice day.

US Gold (UXG) has a resource number

This morning, US Gold (UXG) (UXG.to) the junior headed up by Rob McEwen that seems to have missed on its first objectives in Nevada but struck quite nicely on its El Gallo project in Mexico, released a first resource estimate for said Rooster (if you know your Spanish translations). The news release is here and it's interesting.

So to pre-warn subscribers, we'll be taking a closer look at UXG via a NOBS fundamental report in IKN62, out next Sunday.