Golden-based Golden Minerals Company has entered a definitive contract to sell the primary assets of its Velardeña Properties in Durango State, Mexico. The assets include the Velardeña and Chicago mines, as well as the company’s oxide and sulfide processing plants and related equipment. Two of Golden’s Mexican subsidiaries, Minera William S.A. de C.V. (“Minera William”) and Minera Labri S.A. de C.V., are set to finalize the deal with a privately held Mexican company.
The transaction, involving selling certain mining concessions, equipment, land parcels, and other resources, has been valued at $5.5 million, plus the Value-Added Tax (VAT). Payment for the assets will be received in installments, with an initial non-refundable advance payment of $1 million cash made on April 29, followed by a $2 million payment with additional VAT due on May 20, and finally the remaining $2.5 million, plus VAT, to be paid by July 1.
In a separate development, Golden Minerals revealed that the previously disclosed settlement agreement between Minera William and Unifin Financiera S.A.B. de C.V. has been granted final court approval. The dispute, settled for $250,000 in favor of Unifin, has led to the withdrawal of the lawsuit and the release of Minera William from any future claim related to the dispute, according to the company’s Current Report on Form 8-K filed on Dec. 12, 2023.
Warren Rehn, President and CEO of Golden, stated, “We are pleased to have negotiated this cash sale for the Velardeña assets in such a timely manner. The sale will enable us to divest of our production assets and related liabilities in Mexico and allow us to focus on exploration and development, principally of our Argentina assets. We also anticipate future net proceeds from the sale of tax credits related to the holding companies of the production assets.”
Golden Minerals is a precious metals mining exploration company with a primary focus on its Yoquivo property in Mexico and its El Quevar silver property in Argentina. The company also emphasizes acquiring and advancing selected mining properties in Mexico, Nevada and Argentina.