Golden Minerals selling Velardena properties, Mexico
Golden Minerals Company [TSX-AUMN] entered into a definitive agreement to sell the primary assets comprising its Velardena properties, located in Durango state, Mexico.
On April 29, 2024, two of Golden’s Mexico subsidiaries, Minera William SA de CV and Minera Labri SA de CV, entered into certain asset purchase and sale agreements with a privately held Mexican company whereby Minera William and Minera Labri agreed to sell certain mining concessions, equipment, land parcels and other assets to the buyer in exchange for an aggregate purchase price of $5.5-million in cash, plus value-added tax (VAT).
The assets being sold include the Velardena and Chicago mines, both of the company’s oxide and sulphide processing plants, and related equipment. Under the terms of the sales agreements on April 29, 2024, the buyer paid a non-refundable advance payment of $1-million in cash to the company; on May 20, 2024, the buyer shall pay $2-million in cash, plus VAT (including VAT on the advance payment), to the company; and on July 1, 2024, the buyer shall pay $2.5-million in cash, plus VAT, to the company.
Separately, the company announces that the previously disclosed settlement agreement between Minera William and Unifin Financiera SAB de CV, which related to a lawsuit between the entities, was granted final court approval. As previously communicated in the company’s current report on Form 8-K filed on December 12, 2023, under the terms of the settlement agreement, Minera William agreed to pay $250,000 to Unifin in exchange for Unifin’s withdrawal of the lawsuit and release of Minera William from any future claim related to the dispute.
Golden’s president and CEO, Warren Rehn, commented: “We are pleased to have negotiated this cash sale for the Velardena assets in such a timely manner. The sale will enable us to divest of our production assets and related liabilities in Mexico and allow us to focus on exploration and development, principally of our Argentina assets. We also anticipate future net proceeds from the sale of tax credits related to the holding companies of the production assets.”
Golden Minerals is primarily focused on advancing its Yoquivo property in Mexico, and, through partner-financed exploration, advancing its El Quevar silver property in Argentina.