Golden Minerals Company is precious metals mining company, and we own the Velardeņa Properties and associated oxide and sulfide processing plants in the State of Durango, Mexico, the El Quevar advanced exploration property in the province of Salta, Argentina, and a diversified portfolio of precious metals and other mineral exploration properties located primarily in or near historical precious metals producing regions of Mexico. Our common stock is publicly traded on the Toronto and NYSE MKT stock exchanges. Our total company resources are estimated at approximately 60 million silver equivalent ounces in the Measured and Indicated category, plus an additional 67 million silver equivalent ounces in the Inferred category.*
We are focused on evaluating and searching for mining opportunities in North America (including Mexico) with high precious metal grades and low development costs with near term prospects of mining, and particularly properties within reasonable haulage distances of our Velardeņa Properties, which may include the Santa Maria Mine located in the Parral District in Chihuahua State, Mexico, the Santa Rosa vein located in the San Luis del Cordero District in Durango or the Rodeo property located west of the Velardeņa Properties in Durango. We also are focused on continuing to advance certain exploration properties located primarily in Mexico and on holding our El Quevar advanced exploration property in Argentina until we can find a partner to further advance the project. We also continue to review strategic opportunities from time to time.
The oxide mill at Velardeña is presently leased to Hecla Mining Company, and Golden Minerals expects to receive net cash flow under the lease of approximately $4.5 million in 2016. The lease commenced in July 2015; its contract stipulated an initial period of 18 months and included options to extend the lease. In August 2016, Hecla exercised its right to extend the lease for an additional six months, through June 2017. The parties also agreed that Hecla may at its option extend the lease for an additional 18 months following June 30, 2017, or until December 31, 2018. Additionally in the third quarter 2016, Hecla and Golden reached agreement regarding an expansion of the tailings impoundment, at Hecla's cost.
The Company reported a balance of approximately $3.4 million cash and equivalents and zero debt as of September 30, 2016.
We are led by a management team with more than 60 years of combined experience in mining exploration, project development, construction and operations all over the world. Our executive officers have held senior positions at various large mining companies including, among others, Cyprus Amax Minerals Company, INCO Limited, Meridian Gold Company, Barrick Gold Exploration and Noranda Exploration. Our executive team has a proven ability to manage large projects in challenging environments.
*Silver equivalents include only silver and gold and are calculated using a ratio of 70:1 gold to silver. Resources as per Canadian National Instrument 43-101 ("NI-43-101") Technical Reports dated June 2012 (Velardeņa and El Quevar) and April 2015 (Santa Maria). Figures exclude the San Diego joint venture property. See "Resources and 43-101 Reports" page for complete details.