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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. __)*
Minera Andes Inc.
- --------------------------------------------------------------------------------
(Name of Issuer)
Common Stock
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(Title of Class of Securities)
602910101
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(CUSIP Number)
Allen V. Ambrose, 3303 N Sullivan Road, Spokane, WA 99216
- --------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
June 20, 1997
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(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G
to report the acquisition which is the subject of this Schedule 13D,
and is filing this schedule because of Rule 13d-1(b)(3) or (4), check
the following box. [ ]
Note: Six copies of this statement, including all exhibits, should be
filed with the Commission. See Rule 13d- 1(a) for other parties to
whom copies are to be sent.
* The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class
of securities, and for any subsequent amendment containing information
which would alter the disclosures provided in a prior cover page.
The information required on the remainder of this cover page
shall not be deemed to be "filed" for the purpose of Section 18 of the
Securities Exchange Act of 1934 ("Act") or otherwise subject to the
liabilities of that section of Act but shall be subject to all other
provisions of the Act (however, see the Notes).
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<PAGE>
CUSIP No. 602910101
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
N. A. Degerstrom, Inc., 91-0698638
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2. Check the Appropriate Box if a Member of a Group (See
Instructions)
(a)
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(b) X
-------------------------------------------------------------
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3. SEC Use Only
----------------------------------------------------
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4. Source of Funds (See Instructions) OO
-----------------------------
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5. Check if Disclosure of Legal Proceedings Is Required Pursuant to
Items 2(d) or 2(e)
----------------------------------------------
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6. Citizenship or Place of Organization Washington
---------------------------
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7. Sole Voting Power 5,000,000
--------------------------------------
Number of -----------------------------------------------------------------
Shares 8. Shared Voting Power
Beneficially -------------------------------------
Owned by -----------------------------------------------------------------
Each 9. Sole Dispositive Power
Reporting ----------------------------------
Person With -----------------------------------------------------------------
10. Shared Dispositive Power
--------------------------------
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11. Aggregate Amount Beneficially Owned by Each Reporting Person
5,000,000
-----------------------------------------------------------------
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12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) X
---------------------------------------------
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13. Percent of Class Represented by Amount in Row (11) 26%
--------------
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14. Type of Reporting Person (See Instructions)
CO
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<PAGE>
CUSIP No. 602910101
- --------------------------------------------------------------------------------
1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
Neal A. Degerstrom
-----------------------------------------------------------------
- --------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group (See
Instructions)
(a)
-------------------------------------------------------------
(b) X
-------------------------------------------------------------
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3. SEC Use Only
---------------------------------------------------
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4. Source of Funds (See Instructions) AF
-----------------------------
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5. Check if Disclosure of Legal Proceedings Is Required Pursuant to
Items 2(d) or 2(e)
---------------------------------------------
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6. Citizenship or Place of Organization USA
---------------------------
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7. Sole Voting Power
--------------------------------------
Number of -----------------------------------------------------------------
Shares 8. Shared Voting Power 5,000,000
Beneficially -------------------------------------
Owned by -----------------------------------------------------------------
Each 9. Sole Dispositive Power
Reporting ----------------------------------
Person With -----------------------------------------------------------------
10. Shared Dispositive Power 5,000,000
--------------------------------
- --------------------------------------------------------------------------------
11. Aggregate Amount Beneficially Owned by Each Reporting Person
5,000,000
-----------------------------------------------------------------
- --------------------------------------------------------------------------------
12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) X
---------------------------------------------
- --------------------------------------------------------------------------------
13. Percent of Class Represented by Amount in Row (11) 26%
-------------
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14. Type of Reporting Person (See Instructions)
IN
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<PAGE>
CUSIP No. 602910101
- --------------------------------------------------------------------------------
1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
Joan Degerstrom
-----------------------------------------------------------------
- --------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group (See
Instructions)
(a)
------------------------------------------------------------
(b) X
------------------------------------------------------------
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3. SEC Use Only
---------------------------------------------------
- --------------------------------------------------------------------------------
4. Source of Funds (See Instructions) AF
-----------------------------
- --------------------------------------------------------------------------------
5. Check if Disclosure of Legal Proceedings Is Required Pursuant to
Items 2(d) or 2(e)
---------------------------------------------
- --------------------------------------------------------------------------------
6. Citizenship or Place of Organization USA
---------------------------
- --------------------------------------------------------------------------------
7. Sole Voting Power
--------------------------------------
Number of -----------------------------------------------------------------
Shares 8. Shared Voting Power 5,000,000
Beneficially -------------------------------------
Owned by -----------------------------------------------------------------
Each 9. Sole Dispositive Power
Reporting ----------------------------------
Person With -----------------------------------------------------------------
10. Shared Dispositive Power 5,000,000
--------------------------------
- --------------------------------------------------------------------------------
11. Aggregate Amount Beneficially Owned by Each Reporting Person
5,000,000
-----------------------------------------------------------------
- --------------------------------------------------------------------------------
12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) X
---------------------------------------------
- --------------------------------------------------------------------------------
13. Percent of Class Represented by Amount in Row (11) 26%
-------------
- --------------------------------------------------------------------------------
14. Type of Reporting Person (See Instructions)
IN
-----------------------------------------------------------------
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<PAGE>
Item 1. Security and Issuer
This Statement relates to Common Stock (the "Common Stock"), of Minera
Andes Inc., a corporation organized under the laws of Alberta, Canada ("Minera
Andes"). Minera Andes' principal executive offices are located at 3303 N.
Sullivan Road, Spokane, Washington 99216.
Item 2. Identity and Background
This Statement is filed by N.A. Degerstrom, Inc. ("Degerstrom"), a
corporation organized under the laws of the State of Washington, Neal A.
Degerstrom, President of Degerstrom, and Joan Degerstrom, Vice-President of
Degerstrom, each of whose business address is 3303 N. Sullivan Road, Spokane,
Washington 99216. Degerstrom's principal business is contract mining and
operation of its own independently owned mines and mines in joint venture with
other mining companies. During the past five years, neither Degerstrom, Neal A.
Degerstrom nor Joan Degerstrom has been convicted in a criminal proceeding
(excluding traffic violations or similar misdemeanors), and none of them have
been a party to a civil proceeding of a judicial or administrative body of
competent jurisdiction and as a result of such proceeding was or is subject to a
judgment, decree or final order enjoining future violations of, or prohibiting
or mandating activities subject to, federal or state securities laws or finding
any violation with respect to such laws.
Set forth below are the names, principal occupations and citizenship of the
executive officers and directors of Degerstrom. Except as otherwise noted below,
the business address of each of the executive officers and directors of
Degerstom is 3303 N. Sullivan Road, Spokane, Washington 99216, and each
executive officer and director is a citizen of the United States of America.
During the past five years, none of the executive officers or directors has been
convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors), or been a party to a civil proceeding of a judicial or
administrative body of competent jurisdiction and as a result of such proceeding
was or is subject to a judgment, decree or final order enjoining future
violations of, or prohibiting or mandating activities subject to, federal or
state securities laws or finding any violation with respect to such laws.
<TABLE>
<CAPTION>
Name Principal Occupation Citizenship Position with Degerstrom
- ---- -------------------- ----------- ------------------------
<S> <C> <C> <C>
Neal A. Degerstrom President of Degerstrom USA President; Director
Joan Degerstrom Vice President of Degerstrom USA Vice-President; Director
Armand Hansen Vice President of Degerstrom USA Vice President; Director
Michael Cannon Secretary/Treasurer of USA Secretary/Treasurer
Degerstrom
Richard Stager Vice President -- Engineering of USA Vice President -- Engineering
Degerstrom
James Fish Vice President -- General USA Vice President -- General
Counsel of Degerstrom Counsel
</TABLE>
Item 3. Source and Amount of Funds or Other Consideration
Pursuant to an Asset and Share Acquisition Agreement (the "Acquisition
Agreement") dated March 8, 1995, by and among Degerstrom, Minera Andes, Brian
Gavin, Jorge Vargas, Enrique Rufino Marzari Elizalde, Minera Andes S.A., and NAD
S.A., Degerstrom acquired 4,000,000 shares of Minera Andes common stock, and the
right to receive 1,213,409 shares of Minera Andes common stock upon the
satisfaction of certain performance criteria (the "Performance Right"), in
exchange for the shares of Minera Andes S.A. and NAD S.A. owned by Degerstrom.
On January 11, 1996, Minera Andes and Degerstrom also entered into a
subscription agreement whereby Degerstrom subscribed for 500,000 units of Minera
Andes at a price of CDN $1.44 per unit. Each unit consisted of one share of the
Minera Andes common stock and a warrant to purchase an additional share at a
price of CDN $1.75. On July 8, 1996, Degerstrom received 500,000 units from the
Corporation and exercised the
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<PAGE>
500,000 warrants. The source of the funds used in purchasing the units and
exercising the warrants was the forgiveness of debts owed to Degerstrom by
Minera Andes for the provision of services.
Item 4. Purpose of Transaction
The acquisition of Minera Andes' common stock by Degerstrom was in
consideration of the sale of certain of Degerstrom's Argentine mineral
properties to Minera Andes, and for the forgiveness of debt owed to Degerstrom
by Minera Andes.
Except as otherwise disclosed in this Statement, Degerstrom does not have
any plans or proposals that relate to or would result in any of the following:
(a) The acquisition by any person of additional securities of the Company,
or the disposition of securities of the Company;
(b) An extraordinary corporate transaction, such as a merger,
reorganization or liquidation, involving the Company or any of its subsidiaries;
(c) A sale or transfer of a material amount of assets of the Company or any
of its subsidiaries;
(d) Any change in the present board of directors or management of the
Company, including any plans or proposals to change the number or term of
directors or to fill any existing vacancies on the board;
(e) Any material change in the present capitalization or dividend policy of
the Company;
(f) Any other material change in the Company's business or corporate
structure;
(g) Changes in the Company's charter, bylaws or instruments corresponding
thereto or other actions which may impede the acquisition of control of the
Company by any person;
(h) Causing a class of securities of the Company to be delisted from a
national securities exchange or to cease to be authorized to be quoted in an
inter-dealer quotation system of a registered national securities association;
(i) A class of equity securities of the Company becoming eligible for
termination of registration pursuant to Section 12(g)(4) of the Securities
Exchange Act of 1934, as amended; or
(j) Any action similar to those enumerated above.
Item 5. Interest in Securities of the Issuer
(a) - (b) The following chart and accompanying notes state the aggregate
number and percentage of shares of Minera Andes common stock beneficially owned
and with respect to which the persons identified in Item 2 have power, sole or
shared, to vote or direct disposition:
<TABLE>
<CAPTION>
Shares over Shares over
Shares over Shares over which there is which there is
Shares which there is which there is sole power to shared power
Party identified beneficially Percentage sole power to shared power to direct to direct
in Item 2 owned (#) of class vote (#) vote (#) disposition (#) disposition (#)
---------------- ------------ ---------- -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
N.A. 5,000,000 (1) 26 5,000,000 0 5,000,000 0
Degerstrom, Inc.
Neal A. 5,000,000 (1)(2) 26 0 5,000,000 0 5,000,000
Degerstrom
6 of 9
<PAGE>
Joan Degerstrom 5,000,000 (1)(2) 26 0 5,000,000 0 5,000,000
- ---------------
Notes:
(1) Does not include 1,213,409 shares issuable pursuant to the Performance
Right.
(2) Shares are beneficially owned by virtue of control of N.A. Degerstrom,
Inc., which controlling shares are held jointly by Neal A. Degerstrom and
Joan Degerstrom as husband and wife.
</TABLE>
(c) Not applicable.
(d) Not applicable.
(e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to
Securities of the Issuer
Pursuant to the Acquisition Agreement, Minera Andes is obligated to issue
to Degerstrom up to 1,213,409 shares of its common stock if any of the mining
properties transferred to Minera Andes under the terms of the Acquisition
Agreement reach Bankable Feasability (as that term is defined in the Acquisition
Agreement).
1,333,334 of Degerstrom's shares of Minera Andes common stock are held in
escrow pursuant to an Escrow Agreement (the "Escrow Agreement") dated November
30, 1995 between Degerstrom, Minera Andes and Montreal Trust Company of Canada.
The shares subject to the Escrow Agreement will be released from escrow at an
earn-out rate of CDN$0.375 per share of deferred expenditure by Degerstrom (as
defined in the Escrow Agreement).
Item 7. Material to be Filed as Exhibits
The following documents are filed as exhibits:
7.1 Asset and Share Acquisition Agreement between Minera Andes S.A., NAD
S.A., Minera Andes, Degerstrom, Brian Gavin, Jorge Vargas and Enrique
Rufino Marzari Elizalde, dated March 8, 1995, as amended on April 19,
1996. (Incorporated by reference to Exhibit 2.1 of Minera Andes
Registration Statement on Form 10- SB (SEC File No. 000-22731)).
7.2 Escrow Agreement between Minera Andes, Degerstrom and Montreal Trust
Company of Canada, dated November 30, 1995. (Incorporated by reference
to Exhibit 10.16 of Minera Andes Registration Statement on Form 10-SB
(SEC File No. 000-22731)).
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<PAGE>
Signature
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Date: July 21, 1998
N.A. DEGERSTROM, INC.
By: NEAL A. DEGERSTROM
------------------------------------
Neal A. Degerstrom, President
NEAL A. DEGERSTROM
------------------------------------
Neal A. Degerstrom
JOAN DEGERSTROM
------------------------------------
Joan Degerstrom
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<PAGE>
EXHIBIT INDEX
Sequential
Exhibit No. Description
7.1 Asset and Share Acquisition Agreement between Minera Andes S.A., NAD
S.A., Minera Andes, Degerstrom, Brian Gavin, Jorge Vargas and Enrique
Rufino Marzari Elizalde, dated March 8, 1995, as amended on April 19,
1996. (Incorporated by reference to Exhibit 2.1 of Minera Andes
Registration Statement on Form 10- SB (SEC File No. 000-22731)).
7.2 Escrow Agreement between Minera Andes, Degerstrom and Montreal Trust
Company of Canada, dated November 30, 1995. (Incorporated by reference
to Exhibit 10.16 of Minera Andes Registration Statement on Form 10-SB
(SEC File No. 000-22731)).
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