GOLDEN, Colo., April 13, 2020 (GLOBE NEWSWIRE) -- Golden Minerals Company (NYSE American and TSX: AUMN) (“Golden Minerals”, “Golden” or “the Company”) has announced several updates with regards to the Company’s COVID-19-related plans and activities.
In compliance with the recent directive of the Mexican Federal Government to suspend all non-essential activities, including mining, until April 30, 2020 in response to the COVID-19 pandemic, the Company has begun an orderly and safe suspension of mining activities at its Velardeña Properties (Durango State, Mexico). Work is being conducted jointly with Hecla Mining Company to shut down the oxide mill that Hecla presently leases from the Company. Hecla will, per the terms of the existing lease agreement, continue to pay the fixed monthly fee of US$125,000 to Golden for up to 90 days during a temporary shutdown, as well as pay for the shutdown-related costs. During the period of suspension, Golden will not receive the variable component of revenue that is tied to tonnes of ore milled per month.
Separately, the Company recently reached an agreement with Compañia Minera Autlán S.A.B. de C.V. (“Autlán”) to extend the time to repay the remaining US$729,000 balance related to the US$1.5 million refundable deposit received for the proposed sale of its Velardeña properties and other assets in June 2019. The proposed sale was terminated in September 2019 and in December 2019, the Company started making payments in equal monthly installments to repay the deposit, together with interest accruing at 11% per annum, by May 2020. Effective April 9, 2020, the Company and Autlán agreed to reduce the amount of the equal monthly payments and increase the interest rate applicable to the remaining balance of the deposit to 12% per annum, which is now due in full by December 2020.
The extended Autlán repayment terms in conjunction with the US$1.0 million Sentient loan previously received (see the Company’s press release dated April 2, 2020) are designed to provide a cushion of working capital to the Company during financial market disruptions that may materialize as a result of the COVID-19 pandemic.
About Golden Minerals
Golden Minerals is a Delaware corporation based in Golden, Colorado. The Company is primarily focused on advancing its Velardeña Properties in Mexico and its El Quevar silver property in Argentina, as well as acquiring and advancing mining properties in Mexico and Nevada.
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 applicable Canadian securities legislation, including statements related to the COVID-19 pandemic and operations at the Velardeña Properties (including the oxide mill currently leased to Hecla). These statements are subject to risks and uncertainties, including the timing duration of the the ordered shutdown and the overall impact of the COVID-19 pandemic; increases in costs and declines in general economic conditions; changes in political conditions, in tax, royalty, environmental and other laws in the United States or Mexico 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 SEC by Golden Minerals, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.
For additional information please visit http://www.goldenminerals.com/ or contact:
Golden Minerals Company
Director of Investor Relations
SOURCE: Golden Minerals Company