Golden Minerals announces $4.8 million in exploration property sales
Friday, Feb 15, 2013
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.
SOURCE Golden Minerals Company