In December, Golden Minerals introduced the Velardeña mines again into manufacturing and had hoped to generate constructive money circulation within the first half of this yr. Nevertheless, simply two months later, it stopped mining as a consequence of underperformance.
Along with the asset sale, Golden has additionally settled a court docket case with Unifin Financiera for $250,000. Final yr, the Mexican financier launched a lawsuit in opposition to the corporate for funds owed on sure drilling gear, and was looking for restoration of as a lot as $12.5 million.
“We’re happy to have negotiated this money sale for the Velardeña property in such a well timed method. The sale will allow us to divest of our manufacturing property and associated liabilities in Mexico and permit us to deal with exploration and growth, principally of our Argentina property,” Golden Minerals CEO Warren Rehn mentioned in a press release.
The corporate at the moment owns 100% of the El Quevar undertaking situated in Argentina’s Salta province. This 56.7-sq.-km. property was topic to vital exploration between 2004-2012, and was just lately below an earn-in settlement with Barrick Gold.
A 2018 preliminary evaluation on El Quevar outlined the potential for a six-year mining operation producing 29 million oz. of payable silver at a mean grade of 409 g/t. The PEA estimated a $45 million web current worth at a 5% low cost charge and a silver value of $16.66/oz.
Along with El Quevar, Golden additionally has an choice to accumulate 51% of the Sarita Este undertaking, additionally in Salta province. It’s an exploration-stage gold-silver-copper undertaking located close to First Quantum’s Taca Taca undertaking.