I finally got to listen to the conference call, which is available on the AUM-site (was it there earlier?), and after listening to the Q&A session, I am convinced that this is the right deal for ECU.

I now better understand that the experienced management team of Golden Minerals can make a huge difference in the further development of Velardena, particularly in taking the right decisions on milling infrastructure and the l-t exploitation of the sulphides. From that angle it's a pity the merger didn't take place two years ago.

We will gain precious time, not just because of the sudden availability of short term financial means, but also by taking the right decisions on how to optimize development and processing of sulphide material, which is 97% of the resource available.

Although they did not confirm it, I got the impression that further development of Velardena will get priority above el Quevar, because for the latter they very recently decided to review the mine plan and shift it towards bulk mining, so they may need more time for further exploration and studies.

So short to mid term we could make some big steps towards improving revenues at Velardena. They are talking about a 2000 MT mill capacity to start with. So they know already what they want. Good.

Another important aspect, which is mentioned in the slides, but what I begin to appreciate more fully, is the aspect of diversification. ECU was dependent on one property in one country which is always a risk. The new company will be very present with several projects in two countries (Mexico and Argentina) and also have other properties in Peru.

The 40+ properties that Golden brings in in addition to their flagships in Argentina and Mexico are also extremely important for a l-t perspective. By the time ECU standalone would have been making sufficient cash to look around and invest elsewhere (say 2-3 years), prices of properties would probably have risen skyhigh. That portfolio of properties makes the new company a full fledged mid-tier producer (once they produce at large scale).

For those that haven't heard the Conference Call yet, I recommend to go to the AUM site and listen to it.

http://www.goldenminerals.com/