Military Metals acquires past-producing antimony project in Nevada
The Last Chance property is situated in Nye county, Nevada, approximately 18 km due west of the Round Mountain gold mine operated by Kinross Gold.
Shares of Golden Minerals Company (NYSE American, TSX: AUMN) plummeted on Monday as the company announced the pricing of a US public offering to raise working capital and keep its mining operations going.
In a press release, the Colorado-based miner said it plans to sell 6 million common shares priced at $0.70 each, raising gross proceeds of $4.2 million. It will also offer warrants to purchase up to 9 million shares with an exercise price the same as the issue price.
The offering comes six months after the company said it would need to raise enough cash to restart mining operations at its Velardeña properties in Durango state, Mexico. At the time, it had cash of approximately $2.4 million.
Velardeña consists of two past-producing underground silver-gold mines and two processing mills. Mining operations were suspended in November 2015 due to a combination of low metals prices, mining dilution and metallurgical challenges rendered operations unprofitable.
Now, the company believes the improved sales terms would permit the restart of operations without the previously planned bio-oxidation facility, which initially had an estimated capital cost of $6.5 million, but then more than doubled to $14 million.
Following its decision to restart the Velardeña properties, Golden Minerals has been seeking capital to fund the expenses. In June, it announced a registered direct offering to raise $2.1 million. That offering saw the company issue approximately 1.42 million shares at $1.45 per share.
The latest offering, however, saw the company price its common share at about half of that, highlighting the deterioration of its stock since then.
By market close Monday, Golden Minerals traded 42.5% lower at roughly $0.54 on the NYSE American exchange. Its market capitalization was just over $4.6 million. For the year, its stock fell by almost 95%.
