I have to believe that Sentient will backstop AUMN's capital needs (by early 2016), as they are needed, either through equity or debt. Sentient, who already owns 25% (?) of AUMN, realizes the value to this company whenever metal prices recover. Thus, they will keep this company afloat either through private equity or a private note/debt, and fortunately, the issuance will not involve the public capital markets.

Silverbull50

At June 30, 2015, the Company's cash and cash equivalents balance was $3.3 million. Assuming metals prices of $16.00 per ounce silver and $1,125 per ounce gold, Golden Minerals expects that the Velardena Properties will generate near breakeven operating margin through the remainder of 2015. The recently executed lease agreement with Hecla should contribute approximately $0.2 million in net cash flow during the second half of 2015. During 2016, the Hecla lease should generate between $4.0 and $5.0 million of net cash flow. With the cash balance at June 30, 2015, the assumptions described below, and in the absence of additional funding from outside sources, the Company expects to end 2015 with a near zero cash balance. This projected cash balance is not sufficient to provide adequate reserves in the event of decreasing metals prices or interruptions of, or less favorable results than planned from, mining and activity at the Velardena Properties or to adequately pursue further exploration of the Company's Mexican properties, and therefore requires the Company to seek additional external funding from equity or debt.

With the June 30, 2015 cash balance of $3.3 million and a near breakeven operating margin from Velardena for the remainder of 2015, assuming metals prices of $16.00 per ounce silver and $1,125 per ounce gold, Golden expects to spend approximately $3.2 million during the remainder of 2015 on the following items:

• $0.3 million at the El Quevar to fund ongoing maintenance activities and property holding costs
• $1.0 million on exploration activities and property holding costs related to the Company's portfolio of exploration properties located primarily in Mexico
• $1.9 million, comprised of general and administrative costs of $2.0 million offset by $0.1 million in decreased working capital primarily related to collection of value added tax receivables