Golden Minerals Announces Corporate Initiatives In Response To Covid-19 Uncertainties
GOLDEN, April 02, 2020 - Golden Minerals Company (NYSE American and TSX: AUMN) (“Golden Minerals”, “Golden” or “the Company”) announced the Company is undertaking several initiatives in response to COVID-19 related economic and financial market uncertainties.
The Company is following World Health Organization protocols and local government rules and recommendations at all its projects and corporate offices. Office employees are working remotely wherever possible. Certain business restrictions have been implemented in Mexico, but currently the Company’s oxide mill at Velardeña (Durango State, Mexico) continues to operate normally as it processes ore for Hecla Mining Company’s San Sebastian mine per the terms of an existing agreement.
In response to potential economic and market uncertainties caused by the COVID-19 pandemic, the Company has secured a short-term USD$1.0 million loan from a limited partnership managed by its largest shareholder, Sentient. The loan, which is unsecured, will accrue interest at a rate of 10% per annum and has a maturity date of December 31, 2020. The Company is also in discussions with Compañia Minera Autlán (“Autlán”) to extend the time to repay the remaining $729,000 balance related to the US$1.5 million refundable deposit received for the proposed sale of its Velardeña properties in June 2019. The proposed sale was terminated in September 2019, and the refundable deposit was being repaid in equal monthly installments, with interest accruing at 11% per annum, through May 2020. The Sentient loan and the potential extension of time to repay Autlán are intended to provide a cushion of working capital to the Company during financial market disruptions that may materialize as a result of the pandemic.
Separately, Golden Minerals would like to notify shareholders that its 2020 Annual General Meeting will be held virtually on June 10, 2020. Shareholders of record as of April 23, 2020 will receive information in May about voting and attending the meeting virtually.
Golden Minerals President and Chief Executive Officer Warren M. Rehn remarked, “We continue to monitor directives issued by the World Health Organization and governmental and health offices in locations where Golden Minerals works, and have taken actions designed to prioritize the health and safety of our workers. We intend to use this period of time to continue to develop optimized plans for our Velardeña operation and advance plans for 2021 production from our Rodeo gold project.”
About Golden Minerals
Golden Minerals is a Delaware corporation based in Golden, Colorado. The Company is primarily focused on advancing its Velardeña Properties in Mexico and its El Quevar silver property in Argentina, as well as acquiring and advancing mining properties in Mexico and Nevada.
Forward-Looking Statements
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 status of business restrictions and other matters related to the COVID-19 pandemic and the anticipated future operations at the Velardeña and El Quevar properties, and potential future production from the Rodeo property. These statements are subject to risks and uncertainties, including the timing duration and overall impact of the COVID-19 pandemic; increases in costs and declines in general economic conditions; changes in political conditions, in tax, royalty, environmental and other laws in the United States, Mexico or Argentina and other market conditions; and fluctuations in silver and gold prices. Golden Minerals assumes no obligation to update this information. Additional risks relating to Golden Minerals may be found in the periodic and current reports filed with the SEC 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 (303) 839-5060 SOURCE: Golden Minerals Company