Golden Minerals Terminates Material Agreement
Ticker: AUMN · Form: 8-K · Filed: Mar 27, 2024 · CIK: 1011509
| Field | Detail |
|---|---|
| Company | Golden Minerals CO (AUMN) |
| Form Type | 8-K |
| Filed Date | Mar 27, 2024 |
| Risk Level | medium |
| Pages | 3 |
| Reading Time | 3 min |
| Key Dollar Amounts | $0.01, $10 million, $0.5 million, $1 million, $2 million |
| Sentiment | neutral |
Sentiment: neutral
Topics: material-agreement-termination, corporate-action
TL;DR
Golden Minerals just terminated a big deal. What's next?
AI Summary
Golden Minerals Company announced on March 21, 2024, the termination of a material definitive agreement. The company, formerly known as Apex Silver Mines Ltd, is incorporated in Delaware and headquartered in Golden, Colorado.
Why It Matters
The termination of a material definitive agreement could impact Golden Minerals' ongoing operations, financial standing, or future strategic plans.
Risk Assessment
Risk Level: medium — Termination of a material definitive agreement can signal significant business challenges or shifts, warranting closer scrutiny.
Key Players & Entities
- Golden Minerals Company (company) — Registrant
- Apex Silver Mines Ltd (company) — Former company name
- March 21, 2024 (date) — Date of earliest event reported
- 350 Indiana Street, Suite 650 Golden, Colorado 80401 (location) — Principal executive offices address
- 303-839-5060 (phone_number) — Registrant's telephone number
FAQ
What specific material definitive agreement was terminated?
The filing states the termination of a material definitive agreement but does not specify which agreement in the provided text.
What are the reasons for the termination of this agreement?
The provided text does not detail the reasons behind the termination of the material definitive agreement.
When did the termination of the agreement become effective?
The filing indicates March 21, 2024, as the date of the earliest event reported, which is the termination of the agreement.
What are the potential financial implications of this termination for Golden Minerals Company?
The filing does not specify the financial implications of the agreement's termination.
Does this termination affect any ongoing projects or operations of Golden Minerals Company?
The filing does not provide details on whether the termination impacts ongoing projects or operations.
Filing Stats: 814 words · 3 min read · ~3 pages · Grade level 11.8 · Accepted 2024-03-27 10:46:00
Key Financial Figures
- $0.01 — nge on which registered Common Stock, $0.01 par value AUMN NYSE American Indi
- $10 million — ect, Barrick must: (A) incur a total of $10 million in work expenditures over a total of ei
- $0.5 million — penditures over a total of eight years ($0.5 million per year in years one and two, $1 milli
- $1 million — million per year in years one and two, $1 million per year in years three, four and five,
- $2 million — year in years three, four and five, and $2 million per year in years six, seven and eight)
Filing Documents
- tm249916d1_8k.htm (8-K) — 29KB
- tm249916d1_ex99-1.htm (EX-99.1) — 15KB
- tm239916d1_ex99-1img001.jpg (GRAPHIC) — 21KB
- tm239916d1_ex99-1img002.jpg (GRAPHIC) — 309KB
- 0001104659-24-039495.txt ( ) — 673KB
- aumn-20240321.xsd (EX-101.SCH) — 3KB
- aumn-20240321_lab.xml (EX-101.LAB) — 33KB
- aumn-20240321_pre.xml (EX-101.PRE) — 22KB
- tm249916d1_8k_htm.xml (XML) — 4KB
02 Termination of a Material Definitive Agreement
Item 1.02 Termination of a Material Definitive Agreement. On March 21, 2024, Golden Minerals Company (the "Company") received written notice from Barrick Gold Corporation ("Barrick"), notifying the Company of Barrick's election to terminate the Earn-In Agreement, dated as of April 9, 2020, by and among the Company, several of the Company's directly and indirectly wholly owned subsidiaries, and Barrick (the "Earn-In Agreement") under which Barrick acquired an option to earn a 70% interest in the Company's El Quevar project located in the Salta Province of Argentina. Pursuant to the terms of the Earn-In Agreement, in order to earn the undivided 70% interest in the El Quevar project, Barrick must: (A) incur a total of $10 million in work expenditures over a total of eight years ($0.5 million per year in years one and two, $1 million per year in years three, four and five, and $2 million per year in years six, seven and eight); (B) deliver to the Company a National Instrument 43-101 compliant pre-feasibility study pursuant to the parameters set forth in the Earn-In Agreement; and (C) deliver a written notice to exercise the Option to the Company within the term of the Earn-In Agreement. Additionally, Barrick may terminate the Earn-In Agreement at any time after spending a minimum of $1 million in work expenditures (the "Expenditure Commitment") and upon providing 30 days' notice to the Company. Barrick has performed the Expenditure Commitment and the termination of the Earn-In Agreement will become effective on April 20, 2024. The foregoing description of the Earn-In Agreement does not purport to be complete and is qualified in its entirety by reference to the text of the Earn-In Agreement, which was filed as Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2020.
01 Regulation FD Disclosure
Item 7.01 Regulation FD Disclosure. On March 27, 2024, the Company issued a press release announcing the termination of the Earn-In Agreement. A copy of the press release is attached hereto as Exhibit 99.1 . The information contained in Item 7.01 of this Form 8-K, including Exhibit 99.1 , is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing by the company under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Financial Statements and Exhibits
Financial Statements and Exhibits. (d) Exhibits . Exhibit No. Description 99.1 Press release of Golden Minerals Company, dated March 27, 2024, announcing that Barrick has elected to terminate the Earn-In Agreement. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: March 27, 2024 Golden Minerals Company By: /s/ Julie Z. Weedman Name: Julie Z. Weedman Title: Senior Vice President and Chief Financial Officer