Apex Silver emerges from bankruptcy as Golden Minerals
Bankrupt Bolivian silver miner Apex Silver has officially reemerged as Golden Minerals.
Author: Dorothy Kosich Posted: Thursday , 26 Mar 2009
RENO, NV -
Bolivian miner Apex Silver has emerged from Chapter 11 bankruptcy with Golden Minerals Company as the successor to Apex's assets.
Colorado-based Apex Silver's San Cristobal joint venture partner Sumitomo has acquired all of the silver company's interest in San Cristobal for a cash purchase price of $27.5 million, plus $2.5 million in expenses and the assumption of certain liabilities.
However, Sumitomo will not assume liabilities associated with the silver mine including its guarantee of San Cristobal's indebtedness.
A portion of Apex Silver Mines has been renamed Golden Service Corporation, which will provide management services to San Cristobal for an annual fee of $6 million and a potential $1.5 million annual incentive fee. If Sumitomo terminates the management contract, Golden Minerals will be entitled to a $1 million termination fee.
The common stock of Golden Minerals was expected to begin trading over the counter on Wednesday. Golden Minerals also expects to pursue a listing on a U.S. national securities exchange and the TSX.