GOLDEN MINERALS COMPANY (TSE:AUM) Files An 8-K Entry into a Material Definitive Agreement

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GOLDEN MINERALS COMPANY (TSE:AUM) Files An 8-K Entry into a Material Definitive Agreement

GOLDEN MINERALS COMPANY (TSE:AUM) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.

On December 2, 2019 Minera William S.A. de C.V., an indirect subsidiary of the Company (“William”), and Minera Hecla S.A. de C.V., an indirect subsidiary of Hecla Mining Company, (“Hecla”) entered into a Third Amendment to the Master Agreement and Lease Agreement dated August 2, 2017 (as amended, the “Lease Agreement”) to which William leases the oxide plant located at its Velardeña property to Hecla.

Under the terms of the Third Amendment, William has agreed to reduce the per tonne fee payable by Hecla for the duration of the lease term from US$22 per tonne to US$11 per tonne during any month in which both of the following conditions occur: (1) The Comex daily silver spot closing average price for such month is less than $20 per ounce, and (2) The mill head grade average from the metallurgical balance for such month is less than 1,000 grams per ton equivalent silver head grade. If both conditions are met in any month, Hecla will pay the lower fee on all amounts processed in the oxide plant during such month. If one or both conditions are not met in any month, Hecla will pay the current fee of US$22 per tonne on all amounts processed in the oxide plant during such month. The reduced fee only applies to the tonnage-based payments under the Lease Agreement; the monthly lease payment of $125,000 per month is not affected by the Third Amendment.

Under the terms of the Lease Agreement, Hecla had the right to terminate the Lease Agreement at any time upon 120 days written notice. The Third Amendment extended the advance notice required to 150 days.

The foregoing description of the Third Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of the Third Amendment, which is attached hereto as Exhibit 10.1.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Golden Minerals Co Exhibit
EX-10.1 2 a19-24565_1ex10d1.htm EX-10.1 Exhibit 10.1   THIRD AMENDMENT   TO   MASTER AGREEMENT AND LEASE AGREEMENT   This Third Amendment (“Amendment”) to the Master Agreement and Lease Agreement between Minera William S.A. de C.V. (hereinafter “William”) and Minera Hecla,…
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About GOLDEN MINERALS COMPANY (TSE:AUM)

Golden Minerals Company is a mining company. The Company owns the Velardena and Chicago precious metals mining properties and associated oxide and sulfide processing plants (the Velardena Properties) in the State of Durango, Mexico, the El Quevar advanced exploration property in the province of Salta, Argentina, and a diversified portfolio of precious metals and other mineral exploration properties located primarily in Mexico. Its two segments include its Velardena Properties in Mexico and non-revenue producing activities, including exploration, construction and general and administrative activities. It focuses on evaluating and searching for mining opportunities in North America (including Mexico) with high precious metal grades with near term prospects of mining, and particularly properties within haulage distances of its Velardena Properties, which may include the Santa Maria Mine, the Santa Rosa vein or the Rodeo property.