Golden Minerals Company · TSX:AUMN
Golden Minerals — Merger or Acquisition (June 2011)
16 slides from Golden Minerals's merger presentation, Jun 24, 2011
Slide 1: Merger of Equals Creating a New Growing Silver Producer
Merger of Equals Creating a New Growing Silver Producer Discover Build Operate Golden Minerals & ECU Silver June 24, 2011
Slide 2: Cautionary Statements
2 Cautionary Statements Cautionary Note Regarding Forward Looking Statements: This document contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 27E of the U.S. Securities Exchange Act of 1934 and applicable Canadian securities laws, in
Slide 3: Strong Leadership
3 Strong Leadership Jeffrey Clevenger Chairman, President & CEO Golden Minerals Company (“Golden Minerals”) Stephen Altmann President and Director ECU Silver Mining (“ECU”)
Slide 4: A Compelling Merger of Equals
4 A Compelling Merger of Equals US-based company focused on growth through silver exploration and development in the Americas Developing its flagship asset, El Quevar Advanced primary silver project with district potential Resource: M&I: 9M oz Ag Inferred: 51.5M oz Ag Advanced-stage exploration at i
Slide 5: Strategic Rationale
5 Strategic Rationale Creates a new leading junior silver mining company with a strong growth profile Expansion and ramp-up of existing production at Velardeña Portfolio of exploration assets in the Americas Increased leverage to silver with gold as well as significant base metals byproduct credits
Slide 6: Summary Transaction Terms
6 Summary Transaction Terms Structure (the “Transaction”) 0.0500 Golden Minerals shares plus C$0.000394 for each ECU share To be implemented via a plan of arrangement Taxable transaction Key Statistics Combined entity to have ~31.2 million basic shares outstanding upon completion Ownership of combin
Slide 7: Key Metrics
7 Key Metrics Metrics Golden Minerals ECU Closing Share Price (as at 23-Jun-2011) C$19.83 C$1.05 Share Price – 20 Trading Day VWAP C$18.46 C$0.93 Basic Shares Outstanding (millions) 15.3 317.1 Fully Diluted Shares Outstanding (millions)1 15.5 374.7 Basic Market Capitalization (million) $303.5 $332.9
Slide 8: Extensive Portfolio of Assets
8 Extensive Portfolio of Assets Atlas Project CHILE Cochabamba Project PERU El Quevar Project ARGENTINA PACIFIC OCEAN MEXICO ATLANTIC OCEAN La Pinta Project Zacatecas Project Jehuamarca Project Velardeña Mining District LEGEND Feasibility Advanced Exploration Drill Testing Mine Zacatecas Project Adv
Slide 9: Highly Attractive Growth Profile
9 Highly Attractive Growth Profile Advanced Exploration Zacatecas Feasibility El Quevar ~40 Properties Recon / Target Delineation Atlas Cochabamba Jehuamarca La Pinta Drill Testing Production Ramp-up Velardeña District Stages of Development Value Diversified asset base with exciting development proj
Slide 10: Velardeña – Asset Overview
10 Velardeña – Asset Overview World-class District Located in Durango, one of Mexico’s leading mining states Historically, over 250 Moz Ag have been produced in the district to date Only 50% of project has been explored Significant Mineral Resource Over 40 Moz Ag Eq M&I and 391 Moz Ag Eq Inferred 66
Slide 11: El Quevar – Asset Overview
11 El Quevar – Asset Overview Located in Argentina Salta Province is strongly pro-mining: legal stability, economic/fiscal incentives, geological potential and strong political support Resources & Drilling Resource of 9Moz Ag M&I and 52Moz Ag Inferred Two drill rigs currently working on site Mine De
Slide 12: Attractive Exploration Portfolio
12 Attractive Exploration Portfolio Prime Location Located in prolific silver district 40 km southeast of Fresnillo Extension of both the Mala Noche and Veta Grande vein systems 100% Controlled 14,900 hectares / 65% of district 30 km of veins containing silver-gold-base metal mineralization Vein sys
Slide 13: Significantly Increased Scale
13 Significantly Increased Scale Excludes base metal content Large, High Grade Resource
Slide 14: Benefits to ECU Shareholders
14 Benefits to ECU Shareholders Value Creation Complementary management teams will focus on optimizing existing development plans, mining operations and exploration activities ECU will benefit from Golden Mineral’s strong operational capabilities Maintain exposure to Velardeña expansion and explorat
Slide 15: Benefits to Golden Minerals' Shareholders
15 Benefits to Golden Minerals’ Shareholders Value Creation Golden Minerals operating team to unlock potential at Velardeña Leverages existing cash to capitalize on the expansion and ramp-up at Velardeña Accelerates exploration potential at Velardeña Complementary management teams will focus on opti
Slide 16: Indicative Timetable
16 Indicative Timetable June 24, 2011 Transaction announcement (TSX and NYSE Amex) Late July 2011 Mail securityholder meeting documentation to securityholders Proxy statement for Golden Minerals securityholders Management information circular for ECU securityholders August 2011 Securityholders meeti