Golden Minerals Announces Common Stock Purchase Agreements With Lincoln Park Capital Fund, LLC
May 09 2018 - 5:05PM
Golden Minerals Company (“Golden Minerals”, “Golden” or “the
Company”) (NYSE American:AUMN) (TSX:AUMN) announced today that it
entered into a registered direct purchase agreement with Lincoln
Park Capital Fund, LLC (“LPC”) pursuant to which LPC has agreed to
purchase $1.3 million of the Company’s common stock at $0.41 per
share, the closing price of our common stock on the NYSE American
on May 8, 2018.
In addition, the Company entered into a separate
common stock purchase agreement and registration rights agreement
with LPC that would allow the Company, at its sole discretion, to
sell up to an additional $10.0 million of the Company’s common
stock to LPC over a 36-month period contingent on the effectiveness
of a resale registration statement and satisfaction of other
customary conditions contained in the agreements. Proceeds from
both purchase agreements will be used for general corporate
purposes, including advancing the exploration program at the
Company’s El Quevar property in Argentina.
“In addition to the initial investment in Golden
shares, this agreement will enable us to access capital in the
future, if and when we wish, at attractive terms,” commented
Golden’s President and Chief Executive Officer, Warren M. Rehn.
“This affords the Company greater flexibility to pursue the most
advantageous path forward for our El Quevar project, as well as
other exploration opportunities.”
Under the terms of the common stock purchase
agreement, Golden will control the timing and amount of any future
sale of common stock to LPC. LPC has no right to require any sales
by Golden under the common stock purchase agreement but is
obligated to make purchases according to Golden’s sole direction,
as governed by such agreement. There are no upper limits to the
price LPC may pay to purchase common stock from Golden and the
purchase price of the shares will be based on the prevailing market
prices of Golden shares at the time of each sale to LPC. LPC has
agreed not to cause or engage in any manner whatsoever, any direct
or indirect short selling or hedging of Golden shares of common
stock. There are no limitations on the use of proceeds, and there
are no rights of first refusal, participation rights, penalties or
liquidated damages in the common stock purchase agreement. In
consideration for entering into the common stock purchase
agreement, Golden paid LPC a commitment fee of $300,000. Golden
maintains the right to terminate the common stock purchase
agreement at any time, at its discretion, without any cost or
penalty. A more detailed description of the $1.3 million registered
direct purchase agreement and the $10.0 million common stock
purchase agreement and the related registration rights agreement
are set forth in Golden’s Current Report on Form 8-K filed today
with the Securities and Exchange Commission (the “SEC”).
This press release does not constitute an offer
to sell or the solicitation of an offer to buy securities, nor will
there be any sale of the securities in any jurisdiction in which
such offer, solicitation or sale would be unlawful prior to the
registration or qualification under the securities laws of any such
jurisdiction.
About Golden Minerals
Golden Minerals is a Delaware corporation based
in Golden, Colorado. The Company is primarily focused on advancing
its El Quevar property in Argentina and in acquiring and advancing
mining properties in Mexico with emphasis on areas near its
Velardeña processing plants.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended and Section 21E of the Securities Exchange Act
of 1934, as amended, and applicable Canadian securities
legislation, including statements relating to the Company’s
expectations regarding the closing of the transactions contemplated
under the purchase agreements and the use of proceeds from the
sales of stock under the purchase agreements, the Company’s ability
to sell shares to LPC pursuant to the $10.0 million common stock
purchase agreement, whether the resale registration statement
related to the shares issuable pursuant to the $10.0 million common
stock purchase agreement will be declared effective by the SEC and
remain effective, and the Company’s expectations regarding its
advancement of its El Quevar property and other exploration
opportunities. Golden Minerals assumes no obligation to update this
information. Additional risks relating to Golden Minerals may be
found in the periodic and current reports filed with the SEC by
Golden Minerals, including the Company’s Annual Report on Form 10-K
for the year ended December 31, 2017.
For additional information please visit
http://www.goldenminerals.com/ or contact:
Golden Minerals CompanyKaren WinklerDirector of
Investor Relations(303)
839-5060Investor.relations@goldenminerals.comSOURCE: Golden
Minerals Company
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