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Golden Minerals announces sale of Velardeña assets and settlement with Unifin

GOLDEN, Colo., May 10, 2024–(BUSINESS WIRE)–Golden Minerals Company (“Golden Minerals”, “Golden” or the “Company”) (NYSE-A: AUMN and TSX: AUMN) announces that it has entered into a definitive agreement to sell the principal assets comprising its Velardeña properties, located in the state of Durango, Mexico.

On April 29, 2024, two of Golden’s Mexican subsidiaries, Minera William SA de CV (“Minera William”) and Minera Labri SA de CV (“Minera Labri”) entered into certain asset purchase and sale agreements with a private Mexican company under which Minera William and Minera Labri have agreed to sell certain mining concessions, equipment, land parcels and other assets to the buyer in exchange for an aggregate purchase price of $5.5 million in cash , plus value added tax (“VAT”). The assets sold include the Velardeña and Chicago mines, the Company’s two oxide and sulfide processing plants and related equipment. Under the terms of the sales agreement:

  1. On April 29, 2024, the Buyer paid the Company a non-refundable advance of $1.0 million in cash;

  2. On May 20, 2024, the Buyer shall pay $2.0 million in cash, plus VAT (including VAT on deposit), to the Company, and

  3. On July 1, 2024, the buyer will be required to pay $2.5 million in cash, plus VAT, to the Company.

Separately, the Company announces that the previously disclosed settlement agreement between Minera William and Unifin Financiera SAB de CV (“Unifin”), which concerned a lawsuit between the entities, has received final court approval. As previously disclosed in the Company’s Current Report on Form 8-K filed on December 12, 2023, under the terms of the settlement agreement, Minera William agreed to pay $250,000 to Unifin in exchange for Unifin withdrawing from the lawsuit and the release of Minera William from any future claims related to the litigation.

Golden President and CEO Warren Rehn commented today: “We are pleased to have negotiated this cash sale of the Velardeña assets in such a timely manner. The sale will allow us to divest our production assets and associated liabilities in Mexico and “

About golden minerals

Golden Minerals is a precious metals mining exploration company based in Golden, Colorado. The Company is primarily focused on advancing its Yoquivo property in Mexico and, through partner-funded exploration, advancing its El Quevar silver property in Argentina. The Company also focuses on the acquisition and advancement of select mineral properties in Mexico, Nevada and Argentina.

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 Canadian securities laws. applicable securities, including statements regarding anticipated payments from Buyer. to the Company pursuant to the sales agreements, the Company’s planned disposition of its production assets and related liabilities in Mexico; the Company’s planned focus on the exploration and development of its assets in Argentina and expected future net proceeds from the sale of tax credits related to holding companies of the Company’s production assets. These statements are subject to risks and uncertainties, including the buyer’s ability to make payments under sales contracts, increased costs and declines in general economic conditions; changes in political conditions, tax, royalty, environmental and other laws in the United States, Mexico or Argentina and other market conditions; and fluctuations in the prices of silver and gold. Golden Minerals undertakes no obligation to update this information. Additional risks relating to Golden Minerals can 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 fiscal year ended December 31, 2023 .

For more information, please visit http://www.goldenminerals.com/.

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Contacts

Golden Minerals Company
Karen Winkler, Director of Investor Relations
(303) 839-5060