Under the terms of the agreement, Autlán will have the option to purchase the Canadian holding company ECU Silver Mining, Inc. which owns three of the Company’s Mexican subsidiaries, which together hold the Velardeña properties, including the Velardeña and Chicago mines (currently on care and maintenance), the two processing plants, mining equipment and other adjacent exploration properties. The transfer would include the lease agreement pursuant to which the Company has leased the oxide plant to Minera Hecla, S.A. de C.V. through 2020. The proposed transaction also would include the sale of the Rodeo and the Santa Maria project concessions.
The agreement provides for a period of up to 75 days for Autlán to conduct due diligence. Closing of the transaction is subject to the satisfactory completion by Autlán of its due diligence review. Following completion of its due diligence review, Autlán may elect to terminate the agreement with no further obligation on its part. Closing of the transaction is also subject to approval by the Mexican antitrust authority without imposition of material restrictions, and other customary closing conditions. The parties anticipate that the closing, if it occurs, would take place during the third quarter 2019.
Upon execution of this agreement, Autlán paid a deposit of US$1.5 million to Golden Minerals, which will be applied to the purchase price upon closing.
Golden Minerals’ President and Chief Executive Officer, Warren Rehn, commented, “We are very pleased to announce this transaction, as its consummation will enable Golden Minerals to focus on moving our other existing projects forward, including the newly-acquired Sand Canyon gold-silver project in Nevada, the Yoquivo silver-gold project in Chihuahua State, Mexico, and the El Quevar silver project in Argentina. Our efforts and exploration activities are best directed toward these existing projects, all of which have ample untested potential for expansion, and for other attractive opportunities. The cash received from this transaction will position Golden as one of the best funded junior exploration companies, and we fully intend to use that advantage to the benefit of our shareholders.”
Source: Company Press Release
