Golden Minerals arranges $1M (U.S.) short-term loan
posted on
Apr 02, 2020 05:18PM
Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
Golden Minerals arranges $1M (U.S.) short-term loan
2020-04-02 07:22 ET - News Release
Mr. Warren Rehn reports
GOLDEN MINERALS ANNOUNCES CORPORATE INITIATIVES IN RESPONSE TO COVID-19 UNCERTAINTIES
Golden Minerals 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 Velardena (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 $1.0-million (U.S.) 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 cent per annum and has a maturity date of Dec. 31, 2020. The company is also in discussions with Compania Minera Autlan to extend the time to repay the remaining $729,000 balance related to the $1.5-million (U.S.) refundable deposit received for the proposed sale of its Velardena properties in June, 2019. The proposed sale was terminated in September, 2019, and the refundable deposit was being repaid in equal monthly instalments, with interest accruing at 11 per cent per annum, through May, 2020. The Sentient loan and the potential extension of time to repay Autlan 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 Velardena operation and advance plans for 2021 production from our Rodeo gold project."
About Golden Minerals Company
Golden Minerals is a Delaware corporation based in Golden, Colo. The company is primarily focused on advancing its Velardena properties in Mexico and its El Quevar silver property in Argentina, as well as acquiring and advancing mining properties in Mexico and Nevada.
We seek Safe Harbor.