SOURCE: Golden Minerals Company

Golden Minerals Company

January 04, 2010 07:00 ET

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