US Gold, Minera Andes Reversing Two-Day Decline Following Remarks Touting Proposed Merger
Shares of US Gold (UXG.TO) and Minera Andes (MAI.TO) both are higher today, reversing two days of smallish losses that followed remarks from the CEO, board chairman and largest individual shareholder of the firms touting the expected benefits of a proposed merger of the mining companies.
In prepared remarks released Wednesday, Rob McEwen said the combined companies -- to be renamed McEwen Mining -- would join US Gold's growth profile with Minera Andes' cash flow and creating the potential of a high-growth silver-gold producer with additional exposure to "great grass-roots" exploration prospects.
At last look, Minera Andes shares were up 9 cents at $1.47 each, more than erasing the 6-cent dip for the stock since McEwen's Dec. 21 remarks. US Gold shares are up 7 cents today at $3.32 each, still needing another 2 cents to recover its 9-cent loss during the prior two sessions.
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