Golden Minerals(AUMN) - 2024 Q4 - Annual Report

Joint Ventures and Projects - The company holds majority joint venture interests in the Desierto and Sarita Este concessions, which are gold-silver-copper exploration projects located in northwest Salta Province, Argentina[41]. - The company has a 60% joint venture interest in the Sand Canyon project, an exploration stage gold-silver project in northwestern Nevada[41]. - The primary focus is on advancing exploration activities at the Sarita Este/Desierto project[42]. - Golden Minerals holds a one-third interest in the Desierto I and II concessions, totaling 2505 hectares, and has an option agreement with Pacha Minerals to acquire an additional 28.33% for $1.5 million over 6 years[74]. - The joint venture with Cascadero is structured with Golden Minerals controlling 51% and Cascadero 49%, with payments for the option split according to these interests[75]. - The Sand Canyon project consists of 354 unpatented mining claims totaling approximately 7,223 acres, with a 60% interest earned by spending $2.5 million in exploration expenses[97]. Sales and Financials - The Velardeña and Chicago mines were sold to a Mexican company for an aggregate purchase price of $5.5 million in cash, plus VAT, with $3.0 million due on July 1, 2024[43]. - The sale of the wholly owned subsidiary Silex Argentina was completed for $3.5 million, along with the sale of the Yoquivo Project for $570,000 plus VAT[44]. - The company anticipates cash resources will be exhausted in the first quarter of 2026 without additional cash inflows or asset sales[45]. - The Velardeña Buyer has made payments totaling approximately $2.8 million through April 4, 2025, but remains in default[43]. - The company is evaluating the potential sale of additional Mexican subsidiaries holding tax losses, but the timing and price of any sale are uncertain[44]. - The company has no significant assets for sale and is exploring alternatives to obtain funds, including potential equity financing[45]. - The company sold the Santa Maria gold-silver exploration property for $1.5 million in cash plus VAT, and a 1.5% NSR royalty capped at $1.0 million[100]. - The Yoquivo Project was sold for $570,000 in cash plus VAT[100]. Exploration Activities - Exploration drilling is expected to commence in 2025 to test for gold mineralization extensions and other geochemical anomalies on the Desierto property[81]. - The Sarita Este property has seen historical prospecting since 1996, with high-grade gold results exceeding one ounce per ton from grab samples[85]. - Golden Minerals completed a drill program at Sarita Este in 2021, drilling 10 holes totaling 2,518 meters, indicating potential for a significant gold system[87]. - The company has spent approximately $3.0 million on exploration at Sarita Este, exceeding the required expenditures outlined in the option agreement[89]. - Drill results from 2020 to 2022 indicate a contiguous area of gold mineralization over approximately 40,000 square meters, with the best hole yielding 52.5m of 1.49 g/t Au[93]. - Initial drilling at Sand Canyon did not encounter significant economic concentrations of precious metals, prompting plans for further testing[98]. Asset Status and Company Structure - The Velardeña Properties have been classified as discontinued operations held for short-term sale[43]. - The company does not have mineral reserves and is considered an exploration stage company under S-K 1300[66]. - The company has approximately eight mining properties covering a total of 17,200 hectares, all in the exploration stage[50]. - The company has not completed a preliminary feasibility study for any of its properties to date[67]. - The Rodeo gold mine is considered depleted with no reasonable prospects for economic extraction, and the company has accrued approximately $450,000 for asset retirement obligations[99]. Market Conditions and Company Operations - The company focuses on properties in North and South America, with ongoing exploration efforts at the Sarita Este/Desierto and Sand Canyon projects[101]. - As of April 4, 2025, the closing price of silver was $29.59 per troy ounce, with a high of $34.57 projected for 2025[108][107]. - The closing price of gold on April 4, 2025, was $3,037 per troy ounce, with a projected high of $3,167 for 2025[111][110]. - The mining industry is characterized by aggressive competition for mineral resource opportunities, with competitors having greater financial and technical resources[113]. - The company provides free access to its annual and quarterly reports on its website, complying with SEC and Canadian regulatory requirements[114][115]. Employment - The company has four full-time employees in the United States as of April 4, 2025[112].