================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------------
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1998
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission file Number 000-22731
MINERA ANDES INC.
(Exact name of small business issuer as specified in its charter)
ALBERTA, CANADA
(State or other jurisdiction of incorporation or organization)
NONE
(I.R.S. Employer Identification No.)
3303 N. SULLIVAN ROAD, SPOKANE, WA 99216
(Address of principal executive offices)
(509) 921-7322
(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes |X| No |_|
Shares outstanding as of July 31, 1998: 20,390,030 shares of common stock, with
no par value
Transitional Small Business Disclosure Format (Check One): Yes [ ] No [X]
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<PAGE>
TABLE OF CONTENTS
PART I - FINANCIAL INFORMATION
Item 1 Consolidated Financial Statements...........................3
Item 2 Management's Discussion and Analysis of
Financial Condition and Results of Operations...............9
PART II - OTHER INFORMATION
Item 4 Submission of Matters to a Vote of Security Holders .......12
Item 6 Exhibits and Reports on Form 8-K...........................12
SIGNATURES...................................................................13
2
<PAGE>
<TABLE>
<CAPTION>
MINERA ANDES INC.
"An Exploration Stage Corporation"
CONSOLIDATED BALANCE SHEETS
(U.S. Dollars-Unaudited)
June 30, December 31,
1998 1997
------------ ------------
<S> <C> <C>
ASSETS
Current:
Cash and cash equivalents $ 3,483,374 $ 4,003,519
Receivables and prepaid expenses 138,611 212,533
------------ ------------
Total current assets 3,621,985 4,216,052
Mineral properties and deferred exploration costs 3,749,107 3,226,856
Capital assets, net 189,241 220,981
------------ ------------
Total assets $ 7,560,333 $ 7,663,889
LIABILITIES
Current:
Accounts payable and accruals $ 77,535 $ 79,168
Due to related parties 131,313 118,273
------------ ------------
Total current liabilities 208,848 197,441
SHAREHOLDERS' EQUITY
Share capital 16,414,666 15,132,262
Accumulated deficit (9,063,181) (7,665,814)
------------ ------------
Total shareholders' equity 7,351,485 7,466,448
------------ ------------
Total liabilities and shareholders' equity $ 7,560,333 $ 7,663,889
============ ============
The accompanying notes are an integral part of these
consolidated financial statements.
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
MINERA ANDES INC.
"An Exploration Stage Corporation"
CONSOLIDATED STATEMENTS OF OPERATIONS AND ACCUMULATED DEFICIT
(U.S. Dollars-Unaudited)
Period from
Three Months Three Months Six Months Six Months July 1, 1994
Ended Ended Ended Ended (commencement)
June 30, June 30, June 30, June 30, through
1998 1997 1998 1997 June 30, 1998
------------ ------------ ------------ ------------ --------------
<S> <C> <C> <C> <C> <C>
Administration fees $ 8,130 $ 9,333 $ 16,606 $ 16,420 $ 136,641
Audit and accounting 11,011 11,081 45,344 28,882 142,654
Consulting fees 44,427 48,304 89,275 92,144 529,635
Depreciation 1,518 635 2,783 635 5,927
Equipment rental 1,518 0 3,035 0 9,907
Foreign exchange (gain) loss 126,536 85,312 109,355 90,038 301,866
Insurance 17,937 0 35,875 0 54,451
Legal 45,042 67,637 59,226 97,671 302,642
Maintenance 42 0 54 0 219
Materials and supplies 1,552 12 1,570 12 44,847
Office overhead 109,563 242,873 174,444 324,380 939,776
Telephone 20,824 12,181 39,620 32,289 226,992
Transfer agent 4,501 0 8,421 0 57,576
Travel 3,419 16,224 15,373 24,620 209,772
Wages and benefits 54,550 61,267 110,720 110,084 612,526
Write-off of deferred expenditures 756,557 0 756,557 0 5,241,205
------------ ------------ ------------ ------------ --------------
Total expenses 1,207,127 554,859 1,468,258 817,175 8,816,636
Interest income (42,411) (46,563) (77,055) (87,335) (337,966)
------------ ------------ ------------ ------------ --------------
Net loss for the period 1,164,716 508,296 1,391,203 729,840 8,478,670
Accumulated deficit, beginning
of the period 7,896,617 3,547,548 7,665,814 3,275,646 0
Share issue costs 1,848 32,653 6,164 83,011 567,296
Deficiency on acquisition of subsidiary 0 0 0 0 17,215
------------ ------------ ------------ ------------ --------------
Accumulated deficit, end of the period $ 9,063,181 $ 4,088,497 $ 9,063,181 $ 4,088,497 $ 9,063,181
============ ============ ============ ============ ==============
Net loss per common share $ 0.06 $ 0.03 $ 0.07 $ 0.05 $ 0.68
============ ============ ============ ============ ==============
Weighted average shares outstanding 20,205,765 17,438,389 19,718,340 16,217,254 12,441,660
============ ============ ============ ============ ==============
The accompanying notes are an integral part of these
consolidated financial statements.
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
MINERA ANDES INC.
"An Exploration Stage Corporation"
CONSOLIDATED STATEMENTS OF MINERAL PROPERTIES
AND DEFERRED EXPLORATION COSTS
(U.S. Dollars-Unaudited)
Period from
Three Months Three Months Six Months Six Months July 1, 1994
Ended Ended Ended Ended (commencement)
June 30, June 30, June 30, June 30, through
1998 1997 1998 1997 June 30, 1998
------------ ------------ ------------ ------------ --------------
<S> <C> <C> <C> <C> <C>
Administration fees $ 5,515 $ 7,304 $ 11,376 $ 14,741 $ 294,095
Assays and analytical 58,412 67,690 147,019 137,801 718,921
Construction and trenching 0 15,669 23,576 27,987 490,269
Consulting fees 31,970 31,494 80,722 48,371 673,082
Depreciation 18,286 4,857 36,572 9,715 95,859
Drilling 90,192 54,805 177,603 54,805 515,196
Equipment rental 8,632 18,180 17,469 38,959 232,469
Geology 117,373 215,808 248,078 457,786 2,232,083
Geophysics 21,050 0 22,490 0 209,117
Insurance 14,044 13,995 24,883 15,689 142,889
Legal 26,491 18,464 48,638 38,787 427,977
Maintenance 5,690 7,117 16,782 15,062 114,337
Materials and supplies 10,906 15,579 23,053 33,298 348,000
Project overhead 10,841 10,058 15,079 20,177 224,383
Property and mineral rights 42,373 94,081 155,819 176,664 1,174,271
Telephone 2,893 2,034 7,456 3,040 41,479
Travel 56,104 60,146 146,604 97,230 670,338
Wages and benefits 36,547 29,933 75,589 58,480 509,408
------------ ------------ ------------ ------------ --------------
Costs incurred during the period 557,319 667,214 1,278,808 1,248,592 9,114,173
Deferred costs, beginning of period 3,948,345 4,022,257 3,226,856 3,440,879 0
Deferred costs acquired 0 0 0 0 576,139
Deferred costs written off (756,557) 0 (756,557) 0 (5,241,205)
Mineral property option proceeds 0 0 0 0 (700,000)
============ ============ ============ ============ ==============
Deferred costs, end of the period $ 3,749,107 $ 4,689,471 $ 3,749,107 $ 4,689,471 $ 3,749,107
============ ============ ============ ============ ==============
The accompanying notes are an integral part of these
consolidated financial statements.
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
MINERA ANDES INC.
"An Exploration Stage Corporation"
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
(U.S. Dollars-Unaudited)
Period from
Three Months Three Months Six Months Six Months July 1, 1994
Ended Ended Ended Ended (commencement)
June 30, June 30, June 30, June 30, through
1998 1997 1998 1997 June 30, 1998
------------ ------------ ------------ ------------ --------------
<S> <C> <C> <C> <C> <C>
Operating Activities
Net loss for the period $ (1,164,716) $ (508,296) $ (1,391,203) $ (729,840) $ (8,478,670)
Non-cash items:
Write-off of incorporation costs 0 0 0 0 665
Write-off of deferred expenditures 756,557 0 756,557 0 5,241,205
Depreciation 1,518 635 2,783 635 5,927
------------ ------------ ------------ ------------ --------------
(406,641) (507,661) (631,863) (729,205) (3,230,873)
Net changes in non-cash working
capital items 833,909 126,700 85,329 183,534 70,240
------------ ------------ ------------ ------------ --------------
Cash (used in) provided by operating
activities 427,268 (380,961) (546,534) (545,671) ,160,633)
------------ ------------ ------------ ------------ --------------
Investing Activities
Incorporation costs 0 0 0 0 (665)
Purchases of capital assets (7,615) (540) (7,615) (6,468) (291,028)
Mineral properties and deferred
exploration costs (557,319) (667,214) (1,278,808) 1,248,592 (9,114,173)
Non-cash item: depreciation 18,286 4,857 36,572 9,715 95,859
Acquisition of subsidiaries 0 0 0 0 (593,354)
Mineral property option proceeds 0 0 0 0 700,000
------------ ------------ ------------ ------------ --------------
Cash (used in) investing activities (546,648) (662,897) (1,249,851) (1,245,345) (9,203,361)
------------ ------------ ------------ ------------ --------------
Financing Activities
Shares issued for cash 476,268 0 1,282,404 1,689,102 15,839,127
Shares issued for subsidiaries 0 0 0 0 575,537
Share issue costs (1,848) (32,653) (6,164) (83,011) (567,296)
------------ ------------ ------------ ------------ --------------
Cash (used in) provided by financing
activities 474,420 (32,653) 1,276,240 1,606,091 15,847,368
------------ ------------ ------------ ------------ --------------
Increase (decrease) in cash and cash
equivalents 355,040 (1,076,511) (520,145) (184,925) 3,483,374
Cash and cash equivalents, beginning
of the period 3,128,334 7,552,219 4,003,519 6,660,633 0
------------ ------------ ------------ ------------ --------------
Cash and cash equivalents, end of the period $ 3,483,374 $ 6,475,708 $ 3,483,374 $ 6,475,708 $ 3,483,374
============ ============ ============ ============ ==============
The accompanying notes are an integral part of these
consolidated financial statements.
</TABLE>
6
<PAGE>
MINERA ANDES INC.
"An Exploration Stage Corporation"
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(U.S. Dollars-Unaudited)
1. ACCOUNTING POLICIES
The accompanying consolidated financial statements of Minera Andes Inc.
(the "Corporation") for the three month and six month periods ended June
30, 1998 and 1997 and for the period from commencement (July 1, 1994)
through June 30, 1998 have been prepared in accordance with accounting
principles generally accepted in Canada which differ in certain respects
from principles and practices generally accepted in the United States, as
described in Note 3. Also, they are unaudited but, in the opinion of
management, include all adjustments, consisting only of normal recurring
items, necessary for a fair presentation. Interim results are not
necessarily indicative of results which may be achieved in the future. The
December 31, 1997 financial information has been derived from the
Corporation's audited consolidated financial statements.
These consolidated financial statements should be read in conjunction with
the consolidated financial statements and notes thereto for the year ended
December 31, 1997. The accounting policies set forth in the audited annual
consolidated financial statements are the same as the accounting policies
utilized in the preparation of these consolidated financial statements,
except as modified for appropriate interim presentation.
2. MINERAL PROPERTIES AND DEFERRED EXPLORATION COSTS
Santa Clara Project
The Corporation evaluated the prospects for the Santa Clara property during
the second quarter of 1998 and decided to abandon the property. All
underlying contracts with landowners were terminated and a write-off of
deferred costs amounting to $756,557 was charged to operations.
3. DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES
Differences between Canadian and U.S. generally accepted accounting
principles ("GAAP") as they pertain to the Corporation relate to accounting
for share issue costs, loss per share, non-cash issuance of common shares,
the acquisition of Scotia Prime Minerals, Incorporated, compensation
expense associated with the release of shares from escrow, mineral
properties and deferred exploration costs, stock-based compensation and
non-cash working capital items and are described in Note 13 to the
Corporation's consolidated financial statements for the year ended December
31, 1997.
a. The impact of the above on the interim consolidated financial
statements is as follows:
7
<PAGE>
MINERA ANDES INC.
"An Exploration Stage Corporation"
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)
(U.S. Dollars-Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
---------------------------- ----------------------------
June 30, June 30, June 30, June 30,
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Accumulated deficit, end of period,
per Canadian GAAP $ 9,063,181 $ 4,088,497 $ 9,063,181 $ 4,088,497
Adjustment for acquisition of Scotia 248,590 248,590 248,590 248,590
Adjustment for compensation expense 6,324,914 3,820,939 6,324,914 3,820,939
Adjustment for share issue costs (567,296) (562,702) (567,296) (562,702)
------------ ------------ ------------ ------------
Accumulated deficit, end of period
per U.S. GAAP $ 15,069,389 $ 7,595,324 $ 15,069,389 $ 7,595,324
============ ============ ============ ============
Three Months Ended Six Months Ended
---------------------------- ----------------------------
June 30, June 30, June 30, June 30,
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Share capital, per Canadian GAAP $ 16,414,666 $ 15,054,116 $ 16,414,666 $ 15,054,116
Adjustment for acquisition of Scotia 248,590 248,590 248,590 248,590
Adjustment for compensation expense 6,324,914 3,820,939 6,324,914 3,820,939
Adjustment for share issue costs (567,296) (562,702) (567,296) (562,702)
------------ ------------ ------------ ------------
Share capital, per U.S. GAAP $ 22,420,874 $ 18,560,943 $ 22,420,874 $ 18,560,943
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
Period from
July 1, 1994
(commencement)
through
June 30, 1998
--------------
<S> <C>
Net loss for the period, per Canadian GAAP $ 8,478,670
Adjustment for acquisition of Scotia 248,590
Adjustment for compensation expense 6,324,914
------------
Loss for the period, per U.S. GAAP $ 15,052,174
============
Loss per common share, per U.S. GAAP $ 1.21
============
</TABLE>
8
<PAGE>
MINERA ANDES INC.
"An Exploration Stage Corporation"
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont.)
(U.S. Dollars-Unaudited)
There were no U.S. GAAP adjustments relating to the net loss reported for the
three month and six month periods ended June 30, 1998 and 1997.
b. The following table sets forth the components of the net changes in
non-cash working capital items as reflected in the consolidated
statements of changes in financial position under U.S. GAAP.
<TABLE>
<CAPTION>
Period from
Three Months Ended Six Months Ended July 1, 1994
------------------------------ ---------------------------- (commencement)
June 30, June 30, June 30, June 30, through
1998 1997 1998 1997 June 30, 1998
------------ ------------ ------------ ------------ --------------
<S> <C> <C> <C> <C> <C>
Add (deduct) non-cash
working capital items:
Receivables and
prepaid expenses $ 38,710 $ 62,627 $ 73,922 $ 158,032 $ (138,611)
Funds in trust on
exercise of warrants 806,136 0 0 0 0
Accounts payable
and accruals (3,259) 15,016 (1,633) (29,502) 77,538
Due to related parties (7,678) 49,057 13,040 55,004 131,313
------------ ------------ ------------ ------------ --------------
$ 833,909 $ 126,700 $ 85,329 $ 183,534 $ 70,240
============ ============ ============ ============ ==============
</TABLE>
9
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Note Regarding Forward-Looking Statements
- -----------------------------------------
The information in this report includes "forward-looking" statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934 ("1934 Act"), and is subject to the safe harbor
created by those sections. Factors that could cause results to differ materially
from those projected include, but are not limited to, results of current
exploration activities, the market price of precious and base metals, the
availability of joint venture partners or sources of financing, and other risk
factors detailed in the Corporation's Securities and Exchange Commission
filings.
Overview
- --------
The principal business of the Corporation is the exploration and development of
mineral properties, consisting of mineral rights and applications for mineral
rights covering approximately 530,000 acres in six provinces in the Republic of
Argentina. The lands are comprised of option-to-purchase contracts, exploration
and mining agreements and direct interests through the Corporation's filings for
exploration concessions. The Corporation carries out its business by acquiring,
exploring and evaluating mineral properties through its ongoing exploration
program. Following exploration, the Corporation either seeks to enter joint
ventures to further develop these properties or disposes of them if the
properties do not meet the Corporation's requirements. The Corporation's
properties are all early stage exploration properties and no proven or probable
reserves have been identified.
Plan of Operations
- ------------------
The Corporation has budgeted and plans to spend approximately $1.2 million over
the next 12 months for mineral properties and on exploration activities on its
properties in Argentina. The Corporation believes that its existing funds and
projected sources of funds will be sufficient to finance this planned
exploration and the related ongoing activities for this future period. If the
Corporation were to develop a property or group of properties beyond the stage
of exploration, substantial additional financing would be necessary. Such
financing would likely be in the form of equity, debt or a combination of equity
and debt. The Corporation has no current plans to seek such financing and there
is no assurance that such financing, if necessary, would be available to the
Corporation on favorable terms, if at all.
Results of Operations
- ---------------------
Second quarter 1998 compared with second quarter 1997
The Corporation had a net loss of $1.2 million for the second quarter of 1998,
compared with as net loss of $0.5 million for the second quarter of 1997. This
increase was a direct result of the write-off on abandonment of the Santa Clara
property at the end of the second quarter of 1998, for which the Corporation
recognized a charge to operations of $0.76 million. Excluding this write-off,
the Corporation had been successful in containing costs with reduced
expenditures during the quarter for legal expenses, consulting fees, wages and
benefits, office overhead and travel, although the reduced expenditures were
partially offset by increased telephone, insurance, depreciation, maintenance
and transfer agent expenses. The continuing fall in the Canadian dollar resulted
in an exchange loss for the Corporation of $0.13 million for the quarter,
compared to $0.09 million in the same period last year. The Corporation
maintains the major portion of its working capital and cash reserves in accounts
denominated in Canadian dollars. At June 30, 1998 the Corporation held Cdn$4.9
million in Canadian dollar denominated accounts. Total mineral property and
deferred exploration costs during the quarter were $0.56 million in 1998,
compared with $0.67 million for the second quarter of 1997. The Corporation was
drilling properties in the second quarter of each year, but in 1998 has focused
its attention on the El Pluma/Cerro Saavedra property, where it has had
preliminary exploration success, as in Hole EP-12 which cut 115 feet grading
4.05 g/t gold and 617 g/t silver. In light
10
<PAGE>
of continuing low metal prices and languishing equity markets for junior
exploration companies, however, the Corporation has reduced its level of
staffing and grassroots exploration in Argentina.
Six months ended June 30, 1998 compared with the six months ended June 30, 1997
The Corporation had a net loss of $1.4 million for the six months ended June 30,
1998, compared with a net loss of $0.73 million for the comparable period in
1997. Results in the first quarter of each year were comparable, but the second
quarter included the write-off on the abandonment of the Santa Clara property of
$0.76 million, whereas there were no write-offs in the first six months of 1997.
The Corporation had additional audit and accounting costs, insurance, telephone
and transfer agent expenses in 1998, but showed cost savings for legal expenses
and office overhead over the 1997 period, as a result of reduced financing and
investor relations activities this year. Total mineral property and deferred
exploration costs for the six months were almost identical, with $1.28 million
in 1998 compared with $1.25 million in 1997. Most of the 1998 costs were for the
El Pluma/Cerro Saavedra property, because of the successful preliminary
exploration results there, while 1997 costs had been spread over a number of
properties, some of which the Corporation has subsequently abandoned. Deferred
expenditures related to mineral properties and exploration decreased to $3.75
million at June 30, 1998 compared with $4.7 million a year earlier as a result
of the abandonment of and write-off of deferred expenditures relating to the
Santa Clara property.
Liquidity and Capital Resources
Due to the nature of the mining industry, the acquisition, exploration and
development of mineral properties requires significant expenditures prior to the
commencement of production. To date, the Corporation has financed its activities
through the sale of equity securities and by entering into joint venture
arrangements. The Corporation expects to use similar financing techniques in the
future.
At June 30, 1998, the Corporation had cash and cash equivalents of $3.5 million,
compared to cash and cash equivalents of $6.5 million as of June 30, 1997.
During the year, the Corporation continued to spend its cash for the acquisition
and exploration of its properties in Argentina, but because of its preliminary
exploration success, it has continued to attract additional equity capital
through the exercise of outstanding warrants. Financing activities resulted in
the receipt of $1.3 million in cash from the exercise of warrants in the first
six months of 1998, compared to $1.7 million received in the six months ended
June 30, 1997, when the Corporation received proceeds from its 1996 special
warrant private placement, and from the exercise of warrants issued in earlier
financings. The Corporation's operating activities used $0.55 million in each of
the six months ended June 30, 1998 and 1997. The Corporation's investing
activities were virtually the same in the first six months of 1998 and 1997, at
$1.25 million in each period. Working capital at June 30, 1998 was $3.4 million.
11
<PAGE>
PART II - OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
a. The Corporation held its annual general and special meeting of
shareholders in Calgary, Alberta on June 26, 1998.
b. The following directors were elected at the meeting: Allen V.
Ambrose, John Johnson Crabb, A.D. Drummond, Armand Hansen, Bonnie
L. Kuhn and Allan J. Marter.
c. The following matters were voted on at the meeting:
<TABLE>
<CAPTION>
Abstentions/
Broker
Matters For Against Withheld Non-Votes
------------------------------------------- ---------- -------- -------- ------------
<S> <C> <C> <C> <C>
Ordinary resolution setting the number of
directors at six (6): 12,528,752 3,017 21,200
Election of directors for the ensuing year:
Allen V. Ambrose: 12,531,335 21,634
John Johnson Crabb: 12,531,352 21,617
A.D. Drummond: 12,531,352 21,617
Armand Hansen: 12,531,335 21,634
Bonnie L. Kuhn: 12,531,352 21,617
Allan J. Marter: 12,531,335 21,634
Appointment of Coopers & Lybrand,
LLP as auditor for the ensuing year at a
remuneration to be fixed by the directors: 12,536,669 13,300 3,000
Approve the amendment to the orporation's
Stock Option Plan, increasing the shares
reserved for issuance under the Plan from
2,000,000 to 3,000,000 shares: 7,890,272 737,444 83,300 3,841,953
</TABLE>
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits
Exhibit Number Description
-------------- -----------
27 Financial Data Schedule
b. Reports on Form 8-K: None
12
<PAGE>
SIGNATURES
----------
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
MINERA ANDES INC.
Date: August 11, 1998 By: /s/ ALLEN V. AMBROSE
--------------- -------------------------------------
Allen V. Ambrose
President
Date: August 11, 1998 By: /s/ ALLAN J. MARTER
--------------- -------------------------------------
Allan J. Marter
Chief Financial Officer
(Principal Financial and
Accounting Officer)
13
<PAGE>
EXHIBIT INDEX
-------------
Exhibit
Number Description
- ------- -----------
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
unaudited interim consolidated financial statements of Minera Andes Inc. for the
three-month period ended June 30, 1998 and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 3,483,374
<SECURITIES> 0
<RECEIVABLES> 138,611
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 3,621,985
<PP&E> 4,040,134
<DEPRECIATION> 101,786
<TOTAL-ASSETS> 7,560,333
<CURRENT-LIABILITIES> 208,848
<BONDS> 0
0
0
<COMMON> 16,414,666
<OTHER-SE> (9,063,181)
<TOTAL-LIABILITY-AND-EQUITY> 7,560,333
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,391,203
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (1,391,203)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,391,203)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,391,203)
<EPS-PRIMARY> (0.07)
<EPS-DILUTED> 0
</TABLE>
