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