Rob McEwen Proposes Merger Of U.S. Gold Corporation And Minera Andes Inc.

U.S. Gold Corporation and Minera Andes Inc. announced 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 USD345 million. As proposed by Mr. McEwen, Minera Andes shareholders would receive 0.4 of a US Gold common share for each 1.0 Minera Andes share currently held. The total number of shares outstanding in the combined company would be approximately 252.7 million. The business combination, if approved, is anticipated to become effective in late October 2011. Upon completion of the proposed transaction the combined entity would change its name to McEwen Mining Inc.