Golden, Colo.-based mining company Golden Minerals (NYSE-A: AUMN and TSX: AUMN) has announced the successful completion of its previously publicized sale of the Santa Maria gold-silver property. The property, situated in Chihuahua State, Mexico, has been sold to Transformaciones y Servicios Metalurgicos S.A. DE C.V. (TSM).
The sale, which concluded on December 1, 2023, saw Golden Minerals receive a total of USD $1.74 million. This sum encompasses $1.5 million from the sale of the property and an additional $0.24 million from Value Added Tax (VAT). Golden Minerals is allowed to retain the VAT portion and apply it against its current VAT receivable.
Further terms of the transaction entitle Golden Minerals to a 1.5% net smelter return (NSR) royalty on the Santa Maria concession, with a limit of $1 million. TSM is granted the option to buy out the NSR royalty rights from Golden Minerals for $0.5 million at any time prior to the beginning of commercial production at Santa Maria.
Golden Minerals specializes in gold and silver mining. The company’s primary operational goals include resuming production at its Velardeña Properties; progressing its Yoquivo property in Mexico; and, in partnership with other explorers, advancing its El Quevar silver property in Argentina. The mining entity also aims to acquire and develop additional mining properties in Mexico, Nevada and Argentina.