Golden Minerals (TSX:AUMN) has closed on the sale of its Yoquivo gold-silver project in Chihuahua State, Mexico.
The buyer is Advance Metals Ltd. (ASX:AVM), a mineral exploration company working in Canada and Australia that explores for copper and gold deposits.
The Yoquivo District is located in a past producing, bonanza grade epithermal vein gold and silver district 35 km southeast of the Ocampo Mining District. The Yoquivo claims cover an underexplored epithermal precious metals area.
Via a news release, the company explained that AVM had purchased 100 per cent of the Yoquivo project from Minera de Cordilleras S. de R.L. de C.V., a wholly owned subsidiary of Golden Minerals, for US$570,000 in cash, plus:
- A one-time, cash payment of US$20,000, for AVM to carry out due diligence for seven-days
- On November 1, 2024, AVM made a US$275,000 cash payment to Golden Minerals
- On November 21, 2024, AVM made a final US$275,000 cash payment to Golden Minerals
Golden Minerals will finalize the transfer of the Yoquivo concessions upon establishment of a Mexican subsidiary by AVM.
In its Q3 2024 financial results released last week, the company explained that with the receipt of the proceeds from the sale of Silex Argentina, and the cash payments received to date for the Yoquivo transaction, it has cash and cash equivalents of around $3.6 million and accounts payable of approximately $1.2 million
The company recorded no revenue in Q3 related to gold and silver in doré, but recorded revenue of $0.1 million from the sale of metals at the Velardeña properties.
The team said it is taking actions to address its liquidity and financial stability concerns, which includes receiving the unpaid proceeds from the Velardeña sale, completion of the sale of the Yoquivo gold-silver project, and didn’t rule out obtaining equity or other external financing.
Golden Minerals Co. is a Delaware corporation based in Golden, Colorado.
Golden Minerals stock (TSX:AUMN) last traded at $0.38 and has lost 7.59 per cent over the past three months. Meanwhile, Advance Metals has jumped 37.50 per cent in that time on the Austrian Stock Exchange.
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(Top photo via Golden Minerals.)