Two wholly-owned subsidiaries of Golden Minerals (AUMN.TO) entered into a definitive agreement to sell their shares in Minera William for US$1.2 million to Streamline Metals Capital and Horizon Silver Resources, the company said overnight Thursday.
Minera William principally held tax losses and a royalty interest in the San Diego project in Mexico, Golden Minerals noted.
Separately, Golden Minerals entered into a private placement equity financing arrangement for $856,463 in gross proceeds.
Under the subscription agreement, Streamline agreed to purchase 3,740,000 common shares of Golden Minerals, priced at $0.229 per share. Upon completion around May 20, Streamline will hold approximately 19.9% of issued and outstanding shares of Golden Minerals.
Golden Minerals plans to use the proceeds from the sale and financing to advance the Sand Canyon project in Nevada and Sarita/Desierto project in Argentina.
The company will also use the funds to evaluate new project opportunities in Bolivia, and for general working capital and corporate purposes.
Shares in AUMN were slightly lower in Canada yesterday.