AUMN did the only thing available to surive 2 or 3 quarters. The March 2016 annual report, released April 29, showed net cash of 2.1 million. The first quarter 2016 losses from operations was 2.3 million. Without a cash infusion, the company would be broke by June 30.
http://goldenminerals.com/pdfs/GLDN_InvestorKit/Press-Release-Apr-29-2016-Golden%20Minerals%20Q1%20Results.pdf
With the 4 million cash infusion and continued rent on the mill, AUMN can convert additional shares of stock to Sentient (up to 50%) to minimize or eliminate the Sentient debt. With the cash infusion, additional mill rent, and elimination of Sentient debt, the company may be able to operate until Dec 30, 2016. There will no doubt be additional costs to restart the mining activity, but AUMN has bought 3-6 months time to wait out an increase in silver prices.
When you are scraping the bottom of the barrel, you do desperate things.
(I assume that AUMN has had offers to be bought out. I also assume that Sentient is against a bottom dollar buy out and is holding off offers with their 49+% stock holdings and is shooting for the moon.)
