Golden Minerals Announces Termination of Sales Agreement
Golden Minerals Announces Termination of Sales Agreement
GOLDEN, Colo., Sept. 11, 2019 -- Golden Minerals Company (NYSE American and TSX: AUMN) (“Golden Minerals”,
“Golden” or “the Company”) announced today that the previously announced purchase and sale agreement with
Compañía Minera Autlán S.A.B. de C.V. (MSE: AUTLANB) (“Autlán”) regarding the sale of certain of its Mexic an
properties has been terminated. The agreement was previously announced in a Company news release dated June 27,
2019.
Warren Rehn, Golden Minerals’ President and Chief Executive Officer, commented, “While it is unfortunate we could not come
to terms with Autlán, we are now in a position to consider future options for the properties that were included in the
Autlán agreement. Due to the recent increases in gold and silver prices, we believe the value of these assets has
increased substantially.”
The Company will continue to hold the Velardeña properties and lease its oxide mill to a subsidiary of Hecla Mining
Company, which is expected to result in net operating margin to the Company of approximately $5.0 million per year.
This lease has been ongoing since 2015, and Hecla is permitted to continue processing its San Sebastian material at the
oxide mill through 2020. Similarly, the Company will continue to hold the Santa Maria, Rodeo and Mogotes prec ious
metals exploration properties in its portfolio of assets.
Upon execution of the Autlán agreement, Autlán paid a deposit of US$1.5 million to the Company which would have
been applied to the purchase price upon closing. In accordance with the terms of the agreement, the Company has the
option to repay the deposit within 90 days following termination or elect to conv ey the Rodeo c oncessions to Autlán in full
settlement of the deposit.
About Golden Minerals
Golden Minerals is a Delaware corporation based in Golden, Colorado. The Company is primarily focused on advancing its
El Quevar silver property in Argentina and on acquiring and advancing mining properties in Mexico and Nevada.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Sec urities Act of 1933, as
amended and Section 21E of the Securities Exchange Ac t of 1934, as amended, and applicable Canadian securities
legislation, including statements regarding the anticipated future options for the Company ’s Mexican assets and the estimated
net operating margin to be received under the Hecla lease. These statements are subject to risks and unc ertainties,
including increases in costs and declines in general ec onomic conditions ; changes in political conditions, in tax, royalty,
environmental and other laws in the United States or Mexico and other mark et conditions; fluctuations in silver and gold
prices; results of exploration activities ; and Hecla’s operational decisions regarding the San Sebastian mine and the
possibility that Hecla may elect to terminate the lease prior to the end of 2020. 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 SEC by Golden Minerals, including the Company’s Annual Report on Form 10-K for the year ended December
31, 2018 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2019 and June 30, 2019.
For additional information please visit http://www.goldenminerals.com/.
SOURCE: Golden Minerals Company
Contact:
Golden Minerals Company
Karen Winkler
Director of Investor Relations
(303) 839-5060