Golden Minerals Company

The obvious positives are the necessary cash to expand production and the fact that Sentient Group, the largest shareholder, is also buying a separate private placement for $7.4MM, over and above the $29.5MM purchased by Wells Fargo in a "bought deal." Now AUMN doesn't need to sell assets at give-away prices or issue expensive debt.

The negatives-- It is priced at $5.75/sh, below the closing price last night of $7.02. And, there is a half-warrant at $8.42 for 5 years. However, that was probably necessary to get the deal done and we were at that price very recently before the spurt.

Net-Net....this was critical and I think the market will accept it very soon, if not immediately.

Now the short(s) will really need to scramble to cover unless they are buying many of the issued shares.

Silverbull50

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Ticker Symbol: U:AUMN C:AUM

Golden Minerals Announces Equity Financing

PR Newswire

GOLDEN, Colo., Sept. 14, 2012

GOLDEN, Colo., Sept. 14, 2012 /PRNewswire/ -- Golden Minerals Company (NYSE MKT: AUMN) (TSX: AUM) ("Golden Minerals" or the Company") is pleased to announce that it has entered into an underwriting agreement with Wells Fargo Securities to sell 5,497,504 units, comprised of one share of common stock and a five year warrant to acquire one half of a share of common stock at an exercise price of US$8.42, at a price of US$5.75 per unit, for gross proceeds of US$ 31.6 million. Net proceeds, after underwriting discounts and estimated offering costs, will be approximately US$29.5 million.

(Logo: http://photos.prnewswire.com/prnh/20120803/LA52082LOGO)

Golden Minerals intends to use the net proceeds from the offering to continue the further development and incremental expansion of the Velardena Operations in Mexico, including mine development, mine equipment acquisitions and plant upgrades in connection with the planned ramp-up to 850 tonnes per day throughput, engineering, design and other work related to the planned expansion to 1,150 tonnes per day and for working capital and other general corporate purposes.

The underwritten offering is expected to be completed on September 19, 2012 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the NYSE MKT, the Toronto Stock Exchange and other securities regulatory authorities.

Any offer or sale in the underwritten offering will be made only pursuant to a prospectus supplement filed today with the Securities and Exchange Commission, together with the accompanying base prospectus, included in a registration statement previously filed and declared effective. The prospectus supplement and base prospectus are available on EDGAR. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such jurisdiction. Offers may be made only by means of the prospectus supplement and the accompanying prospectus, copies of which may be obtained by contacting Wells Fargo Securities (1) by mail at 375 Park Avenue, New York, New York 10152, Attn: Equity Syndicate Dept., or (2) by emailing cmclientsupport@wellsfargo.com or (3) by telephone at (800) 326-5897.

The Sentient Group, the Company's largest stockholder, has informed the Company that it intends to purchase, in a private offering pursuant to Regulation S under the U.S. Securities Act of 1933, approximately 1.37 million units, comprised of one share of common stock and a five year warrant to acquire one half of a share of common stock at an exercise price of US$8.42, at a price of US$5.75 per unit, for gross proceeds of US$7.9 million. Net proceeds of the private offering, after discounts and estimated offering costs, would be approximately US$ 7.4 million. The Company intends to use the proceeds of the private offering for the purposes described above. The Company expects the private offering to be completed on or about September 19, 2012, subject to certain conditions including the conditions specified above.