Golden Minerals Co.(AUM-T, AUMN-A)
- Golden Minerals has entered into an equity financingto sell 5.5mm units at US$5.75/unit for proceeds of US$31.6mm
- Each unit will comprise one share of common stock and a five-year warrant to acquire 1/2 share of common stock at US$8.42/share
- Separately, the company largest shareholder, Sentient Group intends to acquire 1.37mm units under the same terms for proceeds of US$7.9mm
- The funds are expected to be used for the development and expansion of the company's Velardena operations in Mexico
Impact -Positive
The equity offering should significantly strengthen the company's balance sheet and address near-term liquidity concerns that in our view have pressured the stock. Together with the net proceeds from ongoing production, we believe the company should have sufficient funds to complete the planned incremental expansion of the Velardena operations to 1,150 tpd.
The company previously disclosed that it forecasts capital and mine development costs for the 12 month period ending June 30, 2013 between US$15-$20mm. Capital and mine development costs to reach 1,150tpd are expected to be between US$40-$50mm (US$20mm to US$30mm for an autoclave circuit and US$10mm for new mine development) and would mostly be spent from mid 2013 through 2014.
As of June 30, 2012 the company reported cash and equivalents of US$23mm.
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Separately, I sure wish some of the individuals, whom cry and complain whenever the stock declines, would find some other "chatroom" to express their emotions, and leave this site to those who want to provide relevant and important information or commentary.
Respectfully,
Silverbull50
