Golden Minerals Announces Intent to Sell El Quevar Silver Project and Provides Corporate Update
03 9월 2024 - 7:45PM
Business Wire
Golden Minerals Company (“Golden Minerals,” “Golden” or the
“Company”) (NYSE-A: AUMN and TSX: AUMN) today announced it has
signed a letter agreement to sell Silex Argentina S.A. (“Silex”),
its wholly-owned subsidiary that owns the El Quevar Project, and
also provided updates on additional corporate activities.
Silex Argentina Sale
The Company signed a Letter Agreement (the “Letter Agreement”)
with Butte Energy Inc. (“Butte”) whereby Butte agreed to purchase
100% of the issued and outstanding shares of Silex, which is the
sole owner of the El Quevar project located in Salta Province,
Argentina (“El Quevar”). The Letter Agreement is intended to be
binding on the parties, pending (i) negotiation of a definitive
Acquisition Agreement (the “Acquisition Agreement”) on or prior to
September 30, 2024, and (ii) closing of the sales transaction (the
“Transaction”) on or prior to October 31, 2024. The purchase price
for the acquisition of 100% of Silex is US$3,500,000, payable in
cash, as follows:
- US$500,000, as a non-refundable deposit, payable to Golden by
the close of business on September 3, 2024;
- US$500,000 payable to Golden upon execution of the Acquisition
Agreement; and
- US$2,500,000 payable to Golden upon closing of the Transaction
(collectively, the “Transaction Payments”).
Given its immediate cash requirements, the Company has entered
into the Letter Agreement to address near-term liquidity needs. As
previously disclosed, the closing of the sale of the final portions
of the Velardeña Properties (located in Durango State, Mexico) has
not been completed and there is an outstanding payment with respect
to that sale of approximately US$2.8 million currently owed to the
Company. While the Company initially planned to conduct additional
drilling and complete an updated Technical Report at El Quevar, the
Company believes that the sale of Silex is the most effective
strategy for alleviating the Company’s short-term financial
pressures. Moving forward, the Company intends to concentrate its
exploration efforts on its other projects, including Sarita
Este/Desierto and Sand Canyon, subject to the availability of
future funding.
Closing of the Transaction will be subject to additional
conditions, including receipt of regulatory approvals, completion
of due diligence review by Butte, and approvals from the board of
directors of each of Butte and Golden. INFOR Financial Inc. is
acting as financial advisor to Golden Minerals in relation to this
Transaction.
CUCA Sales
On August 28, 2024, the Company sold its wholly-owned Mexican
subsidiary, Minera Labri S.A. de C.V. (“Minera Labri”), to a
private Mexican company for approximately US$445,500. Minera Labri
previously owned the Velardeña Properties’ Plant 1, which together
with the Velardeña mines, was sold to another privately-held
Mexican group earlier in 2024. Upon consummation of that
transaction, Minera Labri held no assets but held net operating
losses and inflation-adjusted capital contributions. Under Mexican
law, the balance of Minera Labri’s capital contribution accounts
(“CUCAs”) may be bought and sold. All funds related to the sale of
the CUCAs have now been received and are expected to be deployed to
reduce existing liabilities of the Company and its
subsidiaries.
Desierto Claim Returned to Golden
In the third quarter of 2022, the Mining Court of the Province
of Salta, Argentina (“Salta”), declared the cancellation of the
Company’s Desierto I mining concession. The Company disputed the
cancellation, believing it to be without merit. On August 28, 2024,
the judges of the Court of Appeals of Salta (i) accepted the
Company’s appeal, (ii) revoked the Mining Court’s resolutions of
cancellation and (iii) ordered the restitution to the Company of
the Desierto I mining concession.
Liquidity Update
The Company previously disclosed in August 2024 that it did not
have sufficient resources to meet its expected cash requirements
over the twelve months ending June 30, 2025. The Company ceased
mining at the Velardeña mines in the first quarter 2024, and
subsequently sold the mines and certain related assets; the payment
of US$2.8 million of the purchase price for the remaining Velardeña
assets has been delayed and is overdue. The Company’s only
near-term opportunity to generate cash flow to meet its expected
cash requirements is from the sale of assets, equity or other
external financing. As of August 30, 2024, the Company has cash and
cash equivalents of approximately US$0.9 million.
The Company is taking actions to address its liquidity and
financial stability concerns. As a part of these efforts, the
Company is evaluating and pursuing alternatives to obtain
sufficient funds to continue as a going concern, including the
potential sale of the Company, finalizing the sale of its assets at
the Velardeña Properties, closing of the Transaction to sell Silex,
seeking buyers or partners for the Company’s other assets or
obtaining equity or other external financing. The proceeds from
these sales would be directed toward addressing the Company’s
ongoing operating expenses and satisfying its liabilities, while
seeking to maximize any remaining value for its shareholders. If
the Company is unable to obtain additional resources, it may be
forced to cease operations and liquidate.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and forward-looking information within the meaning of
applicable Canadian securities legislation (collectively,
“forward-looking statements”), including statements regarding the
Company entering into the Acquisition Agreement and closing the
Transaction; the Company receiving the Transaction Payments
contemplated by the Letter Agreement, Acquisition Agreement and
Transaction; the Company’s intention to concentrate its exploration
efforts on its Sarita Este/Desierto and Sand Canyon projects,
subject to the availability of future funding; the Company’s
ability to continue as a going concern in the absence of cash flow
from the sale of its assets, equity or other external financing and
the Company’s ongoing evaluation and pursuit of alternatives to
obtain sufficient financing to continue as a going concern.
These statements are subject to risks and uncertainties
including the Company’s receipt of the Transaction Payments; the
ability of the Company to sell or realize value from the sale of
the Silex Shares or its other assets, or from equity or other
external financings; the receipt by the Company of the outstanding
amounts owed in respect of the sale of the Velardeña Properties;
increases in costs and declines in general economic conditions;
changes in political conditions, in tax, royalty, environmental and
other laws in the United States, Mexico or Argentina and other
market conditions; and fluctuations in silver and gold prices.
Golden Minerals assumes no obligation to update this information.
Additional risks relating to Golden Minerals may be found in the
periodic and current reports filed with the Securities &
Exchange Commission by Golden Minerals, including the Company’s
Annual Report on Form 10-K for the year ended December 31,
2023.
For additional information, please visit
http://www.goldenminerals.com/
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Golden Minerals Company (303) 839-5060
Golden Minerals (AMEX:AUMN)
과거 데이터 주식 차트
부터 9월(9) 2024 으로 10월(10) 2024
Golden Minerals (AMEX:AUMN)
과거 데이터 주식 차트
부터 10월(10) 2023 으로 10월(10) 2024