GOLDEN, Colo., July 17, 2020 (GLOBE NEWSWIRE) -- Golden Minerals Company (NYSE American and TSX: AUMN) (“Golden Minerals”, “Golden” or “the Company”) announced today that it has signed a letter of intent (the “Agreement”) with Fabled Copper Corp. (TSXV: FCO) (“Fabled”) for a transaction that, if executed, would grant Fabled the option to acquire a 100% interest in Golden’s Santa Maria silver-gold project located in Chihuahua State, Mexico.
In October 2019, Golden Minerals entered into a similar option agreement with Magellan Gold (“Magellan”) that gave Magellan a 150-day period in which to complete due diligence and secure funding for its purchase of the Santa Maria project. That agreement expired prior to execution.
The Agreement provides a 10-calendar day period during which Fabled will conduct its due diligence. Pertinent details of the underlying transaction, if executed, include the following:
- Fabled will pay US$ 0.5 million in cash to Golden upon closing and will issue to Golden 1.0 million Fabled shares of common stock;
- Fabled will pay US$ 1.5 million in cash to Golden 12 months after closing of the transaction;
- Fabled will pay US$ 2.0 million in cash to Golden 24 months after closing of the transaction; and
- Upon exercise of the option, Fabled will grant to Golden a 1% net smelter return royalty on the Santa Maria and Punto Com concessions.
The proposed transaction is subject to acceptance by the TSX Venture Exchange (“TSXV”), whose approval will be contingent on a number of regulatory requirements including:
- Fabled having secured, and the TSXV having accepted, an equity private placement of a minimum of CAD$4.0 million; and
- Delivery of an acceptable geological report by Fabled to the TSXV.
The transaction would close within five business days of receiving final acceptance for the transaction from the TSXV.
About Golden Minerals
Golden Minerals is a Delaware corporation based in Golden, Colorado. The Company is primarily focused on advancing its Rodeo and Velardeña Properties in Mexico and, through partner-funded exploration, its El Quevar silver property in Argentina, as well as acquiring and advancing selected mining properties in Mexico, Nevada and Argentina.
On July 15, 2020, Fabled announced that it has entered into a letter of intent for a proposed transaction under which Fabled will be granted the option to acquire a 100% interest in Golden’s Santa María silver-gold mine in the State of Chihuahua, Mexico. In addition, Fabled has existing copper properties located in Northern British Columbia.
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 regarding the proposed transaction with Fabled, including the anticipated timing for closing the transaction. These statements are subject to risks and uncertainties, including Fabled’s due diligence investigation; the timing or outcome of third party or governmental consents (if any); 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 commodity prices. Additional risks relating to Golden Minerals may be found in the periodic and current reports filed with the Securities and Exchange Commission 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
Karen Winkler, Director of Investor Relations
SOURCE: Golden Minerals Company