Golden Minerals Leases Oxide Plant To Hecla
Ticker Symbol: U:AUMN C:AUM

Golden Minerals Leases Oxide Plant To Hecla

PR Newswire

GOLDEN, Colo., July 15, 2015

GOLDEN, Colo., July 15, 2015 /PRNewswire/ -- Golden Minerals Company (NYSE MKT: AUMN; TSX: AUM) ("Golden Minerals" or "the Company") announced today that its wholly-owned subsidiary, Minera William S.A. de C.V. ("William"), owner of the Velardena Properties in Durango State, Mexico, has entered into a lease agreement with Minera Hecla, S.A. de C.V. ("Hecla"), a wholly-owned subsidiary of Hecla Mining Company.

Hecla has leased the currently idle Velardena oxide plant (Plant 2) for an initial term of 18 months beginning July 1, 2015 with potentially two additional six-month extensions beyond the initial 18-month term. Hecla may extend the lease for six months at its option, and then for a subsequent six months unless William elects to use the plant to process material from its own sources. Hecla will make nominal monthly payments to William beginning July 1, 2015 until production begins, anticipated to be around January 1, 2016. Once Hecla reaches its intended capacity of approximately 400 tonnes per day, monthly payments to William will be approximately $400,000 per month or nearly $5 million annually. Should required licenses and permits not be obtained by March 31, 2016, either party has the right to terminate the agreement. The lease contains typical covenants and termination rights. Hecla is responsible for all costs associated with the start up, operation and maintenance of Plant 2.

Jeffrey G. Clevenger, Chairman and Chief Executive Officer of Golden Minerals, said, "We are pleased to see this asset put to beneficial use with revenues to support the property as we continue to develop alternative feed for our oxide plant."

About Golden Minerals

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