Minera Andes Incorporated TSX: MAI and US OTC: MNEAF) and Hochschild Mining (LSE: HOC) have ended their lawsuit over the copper joint venture in San Juan province, Argentina.
The British company Hochschild Mining had sued Minera Andes this March accusing the Toronto based Minera Andes of undue delay in refusing to execute the formal loan agreement documents for three years.
The joint venture was owned 49% by the Canadian company Minera Andes and 51% by the British Hochschild Mining. The companies have finished financing and revised shareholder loan agreements for the joint venture as per a statement from Minera Andes issued on Monday.
Rob McEwen the Chairman and CEO if Minera Andes said that they had worked closely with Hochschild Mining's new management to accomplish this favourable resolution. He also said that they looked forward to working with them on building the value of the jointly owned San Jose Mine and increasing the exploration of the large property.
Besides ending the lawsuit the partner companies have also agreed to use all free cash flow from the mine to wind up debt retirement. Half of which will be allotted to servicing shareholder loans to their companies.