XML 50 R23.htm IDEA: XBRL DOCUMENT v2.4.0.6
BUSINESS ACQUISITION (Tables)
 9 Months Ended
Sep. 30, 2012
BUSINESS ACQUISITION  
Schedule of principal assumptions used in applying the Black-Scholes option pricing model

 

 

 

January 24, 2012

 

Risk-free interest rate

 

0.02% to 0.39%

 

Dividend yield

 

n/a

 

Volatility factor of the expected market price of common stock

 

46% to 77%

 

Weighted-average expected life of option

 

1.4 years

 
Schedule of allocation of the purchase price

The allocation of the purchase price on a preliminary basis, based on the estimated fair value of assets acquired and liabilities assumed on January 24, 2012, is summarized in the following table (in thousands).

 

 

 

Fair Value

 

Purchase price:

 

 

 

Exchangeable shares of McEwen Mining - Minera Andes Acquisition

 

$

664,671

 

Stock options to be exchanged for options of McEwen Mining

 

3,175

 

 

 

$

667,846

 

 

 

 

 

Net assets acquired:

 

 

 

Cash and cash equivalents

 

$

31,385

 

Short-term investments

 

4,952

 

Other current assets

 

9,828

 

Inventories

 

1,362

 

Mineral property interests

 

541,702

 

Investment in Minera Santa Cruz S.A.

 

261,186

 

Equipment

 

1,647

 

Accounts payable

 

(5,323

)

Deferred income tax liability

 

(178,893

)

 

 

$

667,846

 
Schedule of pro forma results for the entity, had the acquisition been completed within the period

The following table sets forth on a pro forma basis, the results of operations for McEwen Mining, had the acquisition of Minera Andes been completed on January 1, 2012 and 2011 (in thousands):

 

Nine months ended September 30, 2012

 

McEwen Mining

 

Minera Andes (a)

 

Combined

 

 

 

 

 

 

 

 

 

Revenue

 

$

15,215

 

$

4,979

 

$

20,194

 

Net (loss) income for the period

 

(40,578

)

3,498

 

(37,080

)

 

Nine months ended September 30, 2011

 

McEwen Mining

 

Minera Andes

 

Combined

 

 

 

 

 

 

 

 

 

Revenue

 

$

—

 

$

35,830

 

$

35,830

 

Net (loss) income for the period

 

(45,568

)

23,406

 

(22,162

)

 

(a)         Nine months ended September 30, 2012 represents the results of Minera Andes’ operations from January 1, 2012 through January 24, 2012, closing date of the acquisition. Beginning January 25, 2012, the results of Minera Andes’ operations are included in McEwen Mining’s consolidated financial statements.