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Golden Minerals Company (NYSE-A: AUMN) has signed a binding agreement to sell its Yoquivo gold-silver project in Chihuahua State, Mexico to Advance Metals (ASX: AVM) for US$570,000 plus VAT. The transaction includes three payments: an initial non-refundable US$20,000 for a seven-day due diligence period starting October 24, 2024, followed by two US$275,000 payments on November 1 and November 21, 2024. The deal is subject to regulatory approvals and due diligence completion. If AVM withdraws, they’ll pay a 20% breakup fee of the purchase price.
Golden Minerals Company (NYSE-A: AUMN) ha firmato un accordo vincolante per vendere il suo progetto oro-argento Yoquivo nello stato di Chihuahua, Messico, a Advance Metals (ASX: AVM) per 570.000 USD più IVA. La transazione prevede tre pagamenti: un pagamento iniziale non rimborsabile di 20.000 USD per un periodo di due diligence di sette giorni che inizia il 24 ottobre 2024, seguito da due pagamenti di 275.000 USD il 1° novembre e il 21 novembre 2024. L’accordo è soggetto ad approvazioni normative e al completamento della due diligence. Se AVM si ritira, dovrà pagare una penale del 20% sul prezzo di acquisto.
Golden Minerals Company (NYSE-A: AUMN) ha firmado un acuerdo vinculante para vender su proyecto de oro y plata Yoquivo en el estado de Chihuahua, México, a Advance Metals (ASX: AVM) por 570,000 USD más IVA. La transacción incluye tres pagos: un primer pago no reembolsable de 20,000 USD por un periodo de debida diligencia de siete días que comienza el 24 de octubre de 2024, seguido de dos pagos de 275,000 USD el 1 de noviembre y el 21 de noviembre de 2024. El acuerdo está sujeto a aprobaciones regulatorias y a la finalización de la debida diligencia. Si AVM se retira, deberá pagar una penalización del 20% del precio de compra.
골든 미네랄스 컴퍼니 (NYSE-A: AUMN)는 멕시코 치와와 주에 있는 요키보 금-은 프로젝트를 Advance Metals (ASX: AVM)에게 570,000 USD에 부가세 별도로 판매하는 법적 구속력이 있는 계약을 체결했습니다. 이 거래는 세 가지 지급으로 이루어져 있습니다: 2024년 10월 24일부터 시작되는 7일간의 실사 기간에 대해 환불 불가능한 20,000 USD의 초기 지급이 있으며, 이어서 2024년 11월 1일과 11월 21일에 각각 275,000 USD가 지급됩니다. 이 거래는 규제 승인의 처리를 포함하여 실사 완료에 따라 달라집니다. AVM이 철수할 경우, 구매 가격의 20%에 해당하는 위약금을 지불해야 합니다.
Golden Minerals Company (NYSE-A: AUMN) a signé un accord contraignant pour vendre son projet d’or-argent Yoquivo dans l’état de Chihuahua, au Mexique, à Advance Metals (ASX: AVM) pour 570 000 USD plus TVA. La transaction comprend trois paiements : un paiement initial non remboursable de 20 000 USD pour une période de diligence raisonnable de sept jours commençant le 24 octobre 2024, suivi de deux paiements de 275 000 USD le 1er novembre et le 21 novembre 2024. L’accord est soumis à l’approbation des régulateurs et à l’achèvement de la diligence raisonnable. Si AVM se retire, elle devra payer des frais de rupture de 20% du prix d’achat.
Golden Minerals Company (NYSE-A: AUMN) hat eine bindende Vereinbarung zum Verkauf seines Yoquivo Gold-Silber-Projekts im Bundesstaat Chihuahua, Mexiko, an Advance Metals (ASX: AVM) für 570.000 USD zuzüglich Mehrwertsteuer unterzeichnet. Die Transaktion umfasst drei Zahlungen: eine nicht rückzahlbare Anfangszahlung von 20.000 USD für einen sieben-tägigen Due-Diligence-Zeitraum, der am 24. Oktober 2024 beginnt, gefolgt von zwei Zahlungen von jeweils 275.000 USD am 1. November und 21. November 2024. Der Deal unterliegt den regulatorischen Genehmigungen und dem Abschluss der Due-Diligence-Prüfung. Sollte AVM zurücktreten, müssen sie eine Rücktrittsgebühr in Höhe von 20 % des Kaufpreises zahlen.
Positive
- Immediate cash injection of US$570,000 from asset sale
- Non-refundable US$20,000 payment secured for due diligence period
- 20% breakup fee protection if buyer withdraws
Negative
- Divestment of potentially valuable gold-silver asset
Insights
The sale of the Yoquivo gold-silver project represents a strategic divestment for Golden Minerals, bringing in $570,000 in cash proceeds. For a micro-cap company with a market cap of just $5.6M, this transaction is significant, representing approximately 10.2% of the company’s current market value. The structured payment plan, with an initial $20,000 due diligence fee and two subsequent $275,000 payments, provides near-term liquidity. The 20% breakup fee protection adds a layer of security to the deal. This cash injection could help strengthen the company’s balance sheet and provide working capital for other operations, though the relatively modest sale price suggests value attribution to this non-core asset.
GOLDEN, Colo.–(BUSINESS WIRE)– Golden Minerals Company (“Golden Minerals”, “Golden” or the “Company”) (NYSE-A: AUMN and TSX: AUMN) today announced it has signed a binding agreement (the “Agreement”) to sell its Yoquivo gold-silver project (located in Chihuahua State, Mexico) (the “Yoquivo Project”) to Advance Metals Limited (ASX: AVM) (“AVM”) an ASX-listed entity focused on the acquisition, discovery, and advancement of high-quality metals projects (the “Transaction”).
Under the terms of the Agreement, AVM shall purchase 100% of the Yoquivo Project from Minera de Cordilleras S. de R.L. de C.V., a wholly-owned subsidiary of Golden Minerals, for total consideration of US$570,000 (the “Purchase Price”), payable in cash, plus value added tax (“VAT”) as follows:
- A non-refundable cash payment of US$20,000, plus VAT, for AVM to have the right to carry out due diligence for a seven-day exclusive period, beginning on October 24, 2024.
- On November 1, 2024, AVM shall make a US$275,000 cash payment, plus VAT, to Golden.
- On November 21, 2024, AVM shall make a final US$275,000 cash payment, plus VAT, to Golden (collectively, the “Transaction Payments”).
Closing of the Transaction will be subject to additional conditions, including receipt of regulatory approvals and completion of due diligence review by AVM. In the event that AVM decides not to complete the Transaction, AVM will be subject to a breakup fee of 20% of the Purchase Price.
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 forward-looking information within the meaning of applicable Canadian securities legislation (collectively, “forward-looking statements”), including statements regarding the Company receiving the Transaction Payments contemplated by the Agreement and Transaction and AVM’s payment of a breakup fee in the amount of 20% of the Purchase Price if AVM decides not to complete the Transaction.
These statements are subject to risks and uncertainties including the Company’s receipt of the Transaction Payments; the ability of the Company to sell or realize value from the sale of the Yoquivo Project or its other assets, or from equity or other external financings; receipt of regulatory approvals required to complete the Transaction; the satisfaction or waiver of the Transaction’s closing conditions; 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 assumes no obligation to update this information. Additional risks relating to Golden may be found in the periodic and current reports filed with the Securities & Exchange Commission by Golden, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.
For additional information please visit http://www.goldenminerals.com/
View source version on businesswire.com: https://www.businesswire.com/news/home/20241025226396/en/
Golden Minerals Company
(303) 839-5060
Source: Golden Minerals Company
FAQ
How much is Golden Minerals (AUMN) selling the Yoquivo Project for?
Golden Minerals is selling the Yoquivo Project for US$570,000 plus VAT.
When are the payment dates for AUMN’s Yoquivo Project sale?
The payments are scheduled for: US$20,000 starting October 24, 2024, US$275,000 on November 1, 2024, and US$275,000 on November 21, 2024.
What happens if AVM cancels the Yoquivo Project purchase from AUMN?
If AVM decides not to complete the transaction, they will be required to pay a breakup fee of 20% of the US$570,000 purchase price.
