a. an upfront payment of $1.0 million,
b. future cash payments pursuant to a net smelter return of 1.5% on
metals produced from the first one million tonnes of ore mined from
the claims sold, and
c. cash payments equivalent to a 3.0% net smelter return on metals
produced from ore mined from the claims in excess of one million
tonnes.
The net smelter return on metals produced from ore mined from the claims in
excess of one million tonnes escalates by 0.5% for each US$0.50 increment
by which the quarterly average copper price exceeds US$3.00 per pound.
Definitive agreements have been executed and the initial cash payment of
US$1.0 million has been paid. Title to the claims is now being transferred.
"Golden Minerals will continue to evaluate opportunities to generate value
from exploration properties held by the Company that are outside of our
specific area of interest, through sale, farm-out or retaining of a royalty
interest," commented Jeffrey Clevenger, Chairman, President and CEO of
Golden Minerals. "The sale of these three claims provided just such an
opportunity to generate value for the Company."
In addition to the three claims included in this transaction, Golden
Minerals currently owns 178 additional claims covering about 14,500
hectares in the Zacatecas district, where the Company's ongoing district
evaluation has identified nine potential target areas for further detailed
exploration.
About Golden Minerals
Golden Minerals is primarily engaged in the advancement of its exploration
projects and in providing mine management services. The Company has a large
portfolio of exploration projects, primarily located in Argentina, Peru and
Mexico and is focusing on its advanced stage El Quevar Project in northern
Argentina.
The Company currently has two diamond drill rigs operating at the El Quevar
Project, with two additional drill rigs planned to be on site within the
next few weeks. The drill program is primarily designed to expand the
current mineral resource and to provide infill drill intercepts in the west
extension of the Yaxtche Zone to support an updated resource estimation,
and to test some of the remaining thirteen target areas contained within
the El Quevar property. The Company expects to update the resource
estimate for the El Quevar Project in September. A drill hole location map
and listing of all drill intercepts for the holes at El Quevar for which
the Company has received and verified results are available at
http://www.goldenminerals.com/.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning
of Section 27A of the Securities Act and Section 21E of the Exchange Act,
including statements regarding the net smelter return on metals produced
from the mineral claims in Mexico sold by the Company to Capstone Mining
Corp. focus of the drilling program at the El Quevar project in Argentina
and the expected update of the El Quevar resource estimate. These
statements are subject to risks and uncertainties, including uncertainties
regarding whether metals will be produced from the claims sold to Capstone
and whether net smelter return payments will be made, future results of
exploration drilling at El Quevar and the possible delay in or failure to
complete an update of the El Quevar resource estimate. Golden Minerals
Company assumes no obligation to update this information. 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, Apex Silver Mines Limited, for the year
ended December 31, 2008.
For additional information please visit http://www.goldenminerals.com/.
Contact Information: Contact: Jerry W. Danni Sr. Vice President Corporate Affairs Golden Minerals Company (303) 839-5060