MissionIR News - Golden Minerals Secures Key Equity Financing to Support Throughput Upgrades at Mexican Silver Projects

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Agreement with Wells Fargo Securities results in net proceeds of some $29.5M

MissionIR would like to highlight Golden Minerals Company, engaged in the exploration and development of precious metals and other mineral properties in Mexico and South America. The company explores for gold, silver, copper, zinc, and lead ores, as well as base metals. It primarily owns and operates Velardena and Chicago properties located in the State of Durango, Mexico.

In the company’s news last week,

Golden Minerals reported that the company has secured an underwriting agreement with Wells Fargo Securities, resulting in net proceeds of some $29.5M.

The deal valued at $31.6M gross ($5.75/unit) will move some 5.5M units, consisting of one share of common stock, plus a five-year warrant to acquire half a share at an exercise price of $8.42/share. The offering is expected to close this September 19, pending customary satisfaction requirements, including but not limited to receipt of requisite exchange approvals (NYSE, TSX) and permissions from associated regulatory bodies.

The primary financing goal is to accelerate incremental expansion of the company’s flagship Velardeña Properties, held by the company’s wholly-owned subsidiary ECU Silver Mining, consisting of the Velardeña, Chicago, and San Diego properties in Durango State, Mexico (14.6M oz Ag, 0.3M oz Au measured and indicated). The Santa Juana mine on the Velardeña property 20 mineral concessions) has been ECU’s primary focus since 1995 and the historical Terneras, San Juanes, and San Mateo are also located on the site. The Chicago project (8 concessions) to the south holds the historic Los Muertos-Chicago mine, the extent of which is still being drilled by the company. The San Diego project (4 concessions) is part of a JV between Golden Minerals and Golden Tag Resources Ltd., containing the historical La Cruz-La Rata and El Trovador mines, in addition to a number of other shallower shafts targeting the narrower Cantarranas, Montanez, and El Jal veins.

Some of the major financing goals will be to expand mine development and acquire the necessary equipment/on-site hardware upgrades required to fully engage the company’s ramp-up plan, something which should result in increasing overall throughput to 850 tonnes/day. Further engineering and design efforts will expand operational capacity up to some 1,150 tonnes/day, with working capital and corporate expenses also taking up some of the funding. On-site oxide and sulfide mills support the exclusively underground operations which consist largely of Shrinkage Stope/cut and fill mining activities utilized to effectively chase the rich veins that occur along a 9.5 mile trend.

Additionally, Golden’s biggest stockholder issued intent to purchase (via Regulation S, SEC Act of 1933) some 1.37M units under the same conditions/definitions, yielding $7.4M in net proceeds ($7.9M gross). The total financing should allow Golden to realize more of the potential at the Velardeña properties within short order and shareholders will be keen to stay up to date on upgrading and other activities as they progress.

Any sale or offer in the underwritten offering shall be made pursuant to the SEC-filed prospectus supplement available via EDGAR (as well as accompanying base prospectus), included in the previously filed/declared effective registration statement.

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Forward-Looking Statement:

This release may contain 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. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.

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