Golden Minerals Provides Financial And Meeting Updates

PR Newswire

GOLDEN, Colo., Dec. 18, 2015

GOLDEN, Colo., Dec. 18, 2015 /PRNewswire/ -- Golden Minerals Company (NYSE MKT: AUMN; TSX: AUM) ("Golden Minerals" or "the Company") has provided an update to its anticipated year-end cash position and information regarding the January 2016 special stockholder meeting to seek approval of the Company's issuance of common stock on conversion of the Sentient October 2015$5.0 million loan.

CASH UPDATE

The Company anticipates it will end 2015 with approximately $4.0 million in cash, as compared to the $2.0 million previously projected and reported in October 2015. Several positive developments have contributed to the improved cash forecast:

• The shutdown at Velardena has progressed on time and below cost projections, due primarily to reduced severance costs as a number of employees have been assigned to work at the oxide plant, which is leased to a third party
• The Company has received an $800,000 tax refund related to activities of ECU Silver Mining, prior to its acquisition by the Company in September 2011
• The Company has received a $500,000 payment under the oxide plant lease earlier than expected, as required permits have been obtained and ore processing has commenced in December

The increased cash balance should allow Golden to further advance its San Luis de Cordero and other projects, focused on obtaining new sources of production.

GOLDEN MINERALS SEEKS STOCKHOLDER APPROVAL

As previously announced, the Company closed on a $5.0 million, one-year convertible loan with its largest stockholder The Sentient Group on October 27, 2015. NYSE MKT rules provide that the Company may issue common stock to Sentient on conversion of the loan only if the issuance on conversion is approved in advance by the Company's stockholders. The loan agreement requires the Company to obtain stockholder approval by January 31, 2016, with an additional 14-day extension available to meet quorum requirements, if needed. The Company has scheduled a special stockholder meeting for January 19, 2016 to seek approval of the issuance of the Company's common stock to Sentient on conversion of the loan. If stockholder approval is not obtained at this meeting, Golden Minerals would be in default on the loan, giving Sentient the right to declare the loan immediately due and payable. Without external financing, the Company does not expect to have sufficient funds to pay the Sentient loan and accrued interest, either on an acceleration or at its original maturity in October 2016, and continue its business.

Assuming that the Sentient loan and accrued interest are converted to the Company's common stock, the Company's projected cash balance at the end of 2015 and the anticipated net cash flow from the oxide plant lease should provide adequate funds to continue the Company's business plans through 2016, including administrative expenses and exploration property holding costs as well as costs for drilling, bulk sampling and other project evaluation activities at the Company's Rodeo, Santa Maria, and newly acquired San Luis de Cordero properties. The Company does not currently expect to have sufficient cash to pay the loan's principal and interest on October 27, 2016 and continue its business plans. Therefore, it is important that the Company obtain stockholder approval of the issuance of its common stock if Sentient elects to convert the note, and the Company's Board of Directors respectfully seeks stockholders' affirmative votes. Proxy materials with further information regarding the Sentient loan have now been distributed and stockholders should soon be receiving their voting materials.

The Company realizes that stockholders may have questions about this important vote, the voting process or the convertible loan. Stockholders may obtain copies of Golden Minerals' proxy statement for the special meeting of stockholders and other documents filed by Golden Minerals with the SEC for no charge at the SEC's website at www.sec.gov. If you have questions regarding the special meeting, please contact Karen Winkler, Director of Investor Relations, at 303-839-5060 or investor.relations@goldenminerals.com, or the Company's proxy solicitor, Alliance Advisors, LLC, 200 Broadacres Drive, 3rd Floor, Bloomfield, NJ 07003, (855)928-4483.

About Golden Minerals

Golden Minerals is a Delaware corporation based in Golden, Colorado. The Company is primarily focused on acquiring and advancing mining properties near its Velardena processing plants and the exploration of properties in Mexico and Argentina.