Golden Minerals Announces $4.8 Million In Exploration Property Sales
GOLDEN, Colo., Feb. 14, 2013 /PRNewswire/ -- Golden Minerals Company (NYSE MKT: AUMN; TSX: AUM) ("Golden Minerals" or "the Company") is pleased to announce the sale of most of its exploration properties in Peru for approximately $4.8 million. The Company has entered into an agreement to sell most of the properties to Compania de Minas Buenaventura S.A.A. (NYSE: BVN) for $4.3 million, and has completed transactions for approximately $3.5 million of that amount. The sale of the remaining $0.8 million in exploration properties to Buenaventura is conditioned on the receipt of third party consents by February 28, 2013. In addition, the Company sold other exploration properties in November 2012 to another third party for $0.5 million. The Company has closed its exploration office in Peru.
Assuming that the final $0.8 million of Peruvian exploration properties are sold to Buenaventura, the Company will have sold mining and royalty rights totaling approximately $9.5 million since announcing in early 2012 its intent to monetize a substantial portion of its exploration portfolio. Previously announced 2012 transactions include the sale of two Bolivian exploration subsidiaries to a subsidiary of Sumitomo Corporation for $250,000, the sale of four claims in Mexico to a subsidiary of Fresnillo PLC for approximately $1.7 million, and the sale of the Company's one percent net smelter royalty interest in the Platosa property to Excellon Resources Inc. for $2.4 million.
Jeffrey Clevenger, Chairman, President and Chief Executive Officer, commented, "Prioritization of projects coupled with our ongoing rationalization process since the beginning of 2012 have resulted in proceeds to the Company of approximately $9.5 million. Importantly, these sales set the company on track for reduced exploration expenditures going forward. We anticipate 2013 exploration expenditures of roughly $5 million, including drilling of several projects that we believe have high potential, approximately one quarter of the level incurred in 2011."
About Golden Minerals
Golden Minerals Company is a Delaware corporation based in Golden, Colorado, primarily engaged in silver and gold mining at its Velardena Operations in Mexico and advancement of the evaluation stage El Quevar project in Argentina.
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 laws, including statements regarding the anticipated sale of $0.8 million of additional exploration properties in Peru to Buenaventura, and anticipated 2013 exploration expenditures These statements are subject to risks and uncertainties, including whether required third party consents can be obtained on or before February 28, 2013 for the anticipated sales of exploration properties to Buenaventura, whether the Company elects to spend more funds on exploration in 2013 than currently planned due to the results of future exploration, changes in geological, geostatistical and other interpretations of the Company's current properties or newly acquired exploration properties, unanticipated exploration opportunities, unexpected increases in costs of materials and supplies used in exploration activities; fluctuations in silver and other metal prices; technical and permitting issues; title problems; and financial market conditions. Golden Minerals Company assumes no obligation to update this information. Additional risks relating to Golden Minerals Company may be found in the periodic and current reports filed with the Securities Exchange Commission by Golden Minerals Company, including the Annual Report on Form 10-K for the year ended December 31, 2011.
For additional information please visit http://www.goldenminerals.com/ or contact:
Golden Minerals Company
Director of Investor Relations
SOURCE Golden Minerals Company