From the AUMN 1st quarter report, (http://www.goldenminerals.com/pdfs/Press%20Release%20FINAL%2005%2003%2011%20with%20tables.pdf ), AUMN has plans to spend 57.5 to 65.5 million in the remainder of this year. With the 15 million loan to ECU, they are committing 72 to 80 million of the dowery leaving a balance of 25 to 30 million at the end of the year. It would appear to me that the total funds might carry the combined company through mid year 2012. If they do not have significant production and sales they will have to obtain more funds outside the company. The Sentient Group has expressed an interest in obtaining an additional 10% of the combined company but has not made a committment. They would probably want another 35 million shares for a negotiated approximate $50 million.

If there is no significant profit within two years, the new company will be in the position ECU was in the last two years, no way to raise money and under attack by the shorts. All the resources in the ground are not worth much unless someone has the financial resources and will to extract and sell them at a profit. The resulting company worth is primarily a function of the earnings.

I believe the major attraction of the merger to AUMN is the potential of significant production within two years from the ECU massive sulfides formation. Otherwise they would be broke and unable to obtain funds before their Argentina mine is in production (sound like ECU). Together they may survive, separately they both become cheap resource takeover targets.