Golden Minerals Acquires Hochschild's Interest in El Quevar Project
GOLDEN, CO--(Marketwire - January 4, 2010) - Golden Minerals Company ("Golden Minerals" or
the "Company") (TSX: AUM) (PINKSHEETS: GDMN) today announced that it has
entered into an agreement with a subsidiary of Hochschild Mining plc
("Hochschild") to acquire Hochschild's 35% interest in the Company's Minera
El Quevar S.A. joint venture. The Minera El Quevar S.A. joint venture with
Hochschild controls approximately 10,000 hectares of the 64,000 hectare El
Quevar project, including the Yaxtche target area. The Company already
controls a 100% interest in most of the remaining 54,000 hectare El Quevar
project area. Completion of the transaction is subject to several
customary closing conditions, including final Toronto Stock Exchange
("TSX") approval.
Golden Minerals will acquire Hochschild's interest in the Minera El Quevar
S.A. joint venture for 400,000 shares of Golden Minerals common stock, and
warrants to acquire 300,000 shares of common stock exercisable for three
years at an exercise price of $15.00 per share. The shares issued to
Hochschild will represent approximately 9.4% of the Company's unrestricted
common stock, assuming that the Sentient private placement previously
announced by the Company is completed.
Hochschild will also have the right for a period of two years from the date
of this transaction to participate in future equity offerings or share
sales by Golden Minerals on a pro rata basis, in order to permit Hochschild
to maintain up to an 11% equity interest, on the same terms and conditions
offered to others in such equity offerings or sales.
About Hochschild Mining plc
Hochschild Mining plc is a leading precious metals company listed on the
London Stock Exchange with a primary focus on the exploration, mining,
processing and sale of silver and gold. Hochschild currently
operates four underground epithermal vein mines, three located in
southern Peru, one in southern Argentina and one open pit mine in
northern Mexico and numerous long-term prospects throughout the Americas.
Hochschild has over forty years experience in the mining of precious metal
epithermal vein deposits.
About Golden Minerals
Golden Minerals is a Delaware corporation based in Golden, Colorado,
primarily engaged in the advancement of its exploration projects and in
providing mine management services. The Company has a portfolio of 35
exploration projects, primarily located in Argentina, Peru and Mexico,
including the advanced stage El Quevar project in the Salta Province of
northwestern Argentina and the Zacatecas project in Mexico. The Company's
experienced management team has proven in house ability to explore, develop
and operate mining projects. Golden Minerals operates the San Cristóbal
mine in Bolivia for Sumitomo Corporation under a Management Services
Agreement.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995, including
statements regarding the purchase of Hochschild's interest in the Minera El
Quevar S.A joint venture and the percentage of the Company's total
outstanding common stock that Hochschild's shares will represent. Factors
that could cause actual results to differ materially include the approval
of the transaction by the TSX and the parties' satisfaction of other
closing conditions, and the completion of the Sentient private placement.
Additional risks relating to Golden Minerals Company may be found in the
periodic and current reports filed with the Securities Exchange Commission
by Golden Minerals Company, including the Annual Report on Form 10-K of its
predecessor for reporting purposes under the securities laws, Apex Silver
Mines Limited, for the year ended December 31, 2008.
For additional information please visit http://www.goldenminerals.com or
contact:
Contact Information: Golden Minerals Company
Jerry W. Danni
(303) 839-5060
Sr. Vice President Corporate Affairs