Even though markets are in a state of flux, Minera Andes has no doubt that copper will stay hot.
For that reason the miner, run by Rob McEwen, the founder and former chief executive officer of Goldcorp, announced a proposed spin-out of its Los Azules copper project in Argentina. At the moment the project is still in the exploration phase, but the company claims to have one of the largest undeveloped copper projects in the world, with indicated resources of 2.2 billion pounds.
At the moment Minera Andes has its hands in gold, silver and copper projects, and the company thinks there's value to be had in creating a pure copper play.
The proposed plan comes out in the midst of copper miner Equinox's battle for control of Lundin Mining and just after HudBay Minerals recently bought Norsemont Mining, which has copper assets in Peru.
If the spin out goes through, current shareholders will keep their Minera Andes shares, and then receive one common share of the new company for each Minera Andes share held.Report Typo/Error