GOLDEN, Colo., May 3, 2016 /PRNewswire/ -- Golden Minerals Company (NYSE MKT: AUMN; TSX: AUM) ("Golden Minerals" or "the Company) today announced that it has entered into a definitive agreement with institutional investors for an offering of shares of common stock with gross proceeds of approximately $4 million. The closing of the offering is expected to take place on or about May 6, 2016, subject to the satisfaction of customary closing conditions.
In connection with the offering, the Company will issue approximately 8 million registered shares of common stock at a purchase price of $0.50 per share in a registered direct offering. Additionally, for each share of common stock purchased by an investor, such investor will receive an unregistered warrant to purchase three-quarters of a share of common stock. The warrants have an exercise price of $0.75 per share, shall be exercisable on the later of six months from the date of issuance and the date of shareholder approval to increase the number of authorized shares of the Company, and will expire five years from the initial exercise date.
Rodman & Renshaw, a unit of H.C. Wainwright & Co., acted as the exclusive placement agent in connection with this offering.
The Company intends to use the proceeds from the offering for exploration and development expenditures for the Company's San Luis del Cordero property, the Santa Maria property, or for acquisition, exploration, and development of other exploration or development properties in Mexico, setting aside funds for repayment of the Sentient loan upon maturity, and for other working capital requirements and general corporate purposes.
The shares of common stock described above (but not the warrants or the shares of common stock underlying the warrants) are being offered pursuant to a shelf registration statement (File No. 333-199026) which became effective on November 5, 2014. Such shares of common stock may be offered only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein. There shall not be any offer, solicitation of an offer to buy, or sale of securities in any state or jurisdiction in which such an offering, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The Company will file a prospectus supplement with the SEC relating to such shares of common stock, and following such filing, copies of the prospectus supplement and the accompanying base prospectus relating to this offering may be obtained at the SEC's website at http://www.sec.gov, or from H.C. Wainwright & Co. by e-mailing email@example.com. The warrants and the shares of common stock underlying the warrants issued in the offering have not been registered under the Securities Act of 1933, as amended, or applicable state securities laws. Accordingly, the warrants and underlying shares of common stock may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws. The shares of common stock, as well as the warrants and the shares of common stock underlying the warrants, issuable pursuant to the offering have not been qualified for distribution in any jurisdiction of Canada and, unless a prospectus is filed in Canada or an exemption from such requirement is available, may not be traded or resold into or to any person resident in any jurisdiction of Canada until the day that is four months and one day after the closing date of the offering.
Neither the Toronto Stock Exchange nor the NYSE MKT has approved or disapproved the contents of this press release.
About Golden Minerals Company
Golden Minerals is a Delaware corporation based in Golden, Colorado. The Company is primarily focused on acquiring and advancing mining properties near its Velardena processing plants and the exploration of properties in Mexico and Argentina.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act and applicable Canadian securities legislation, including statements regarding the anticipated completion of the offering and the intended use of proceeds from the offering. These statements are subject to risks and uncertainties, including: whether the proposed offering is completed, whether required approvals are received, disruptions in the financial markets, changes in the use of proceeds due to unanticipated developments and other factors that may cause actual results, performance or achievements to be materially different than those expressed or implied. Additional risks relating to Golden Minerals may be found in the periodic and current reports filed with the Securities Exchange Commission by Golden Minerals, including the Company's Annual Report on Form 10-K for the year ended December 31, 2015.
Golden Minerals Company
Karen Winkler, Director of Investor Relations
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SOURCE Golden Minerals Company