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: Golden Minerals & ECU Silver
Golden Minerals & ECU Silver Merger of Equals Creating a New Growing Silver Producer Discover Build Operate Discover, Build, Operate June 24, 2011
Slide 2: Cautionary Statements
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, incl
Slide 3: Strong Leadership
Strong Leadership Jeffrey Clevenger Stephen Altmann Chairman, President & CEO President and Director Golden Minerals Company ECU Silver Mining (“Golden Minerals”) (“ECU”) Discover, Build, Operate 3
Slide 4: A Compelling Merger of Equals
A Compelling Merger of Equals US-based company focused on growth through Canada-based silver mining company focused silver exploration and development in the on the prolific Velardeña mining district in Americas Mexico’s historic silver belt Developing its flagship asset, El Quevar Currently
Slide 5: Strategic Rationale
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 cr
Slide 6: Summary Transaction Terms
Summary Transaction Terms 0.0500 Golden Minerals shares plus C$0.000394 for each ECU share Structure To be implemented via a plan of arrangement (the “Transaction”) Taxable transaction Combined entity to have ~31.2 million basic shares outstanding upon completion Ownership of combined enti
Slide 7: Key Metrics
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 C
Slide 8: Extensive Portfolio of Assets
Extensive Portfolio of Assets Velardeña Mining District Velardeña Mining District • Aggressive production expansion planned La Pinta Project La Pinta Project Zacatecas Project • Significant high-grade resource open laterally and at depth MEXICO ATLANTIC OCEAN Zacatecas Project PACIFIC OCEAN • Advanc
Slide 9: Highly Attractive Growth Profile
Highly Attractive Growth Profile Diversified asset base with exciting development projects and strong Production growth profile Ramp-up Feasibility Advanced Exploration Value Velardeña District Drill Testing El Quevar Recon / Target Delineation Zacatecas Atlas Cochabamba ~40 Jehuamarca Properties La
Slide 10: Velardeña – Asset Overview
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 In
Slide 11: El Quevar – Asset Overview
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
Slide 12: Attractive Exploration Portfolio
Attractive Exploration Portfolio Prime Location – Located in prolific silver district – 40 km southeast of Fresnillo Zacatecas Project – 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
Slide 13: Significantly Increased Scale
Significantly Increased Scale Large, High Grade Resource 1. Excludes base metal content Discover, Build, Operate 13
Slide 14: Benefits to ECU Shareholders
Benefits to ECU Shareholders Complementary management teams will focus on optimizing existing development plans, mining operations and exploration activities Value Creation – ECU will benefit from Golden Mineral’s strong operational capabilities Maintain exposure to Velardeña expansion and explo
Slide 15: Benefits to Golden Minerals’ Shareholders
Benefits to Golden Minerals’ Shareholders Golden Minerals operating team to unlock potential at Velardeña Leverages existing cash to capitalize on the expansion and ramp-up at Velardeña Value Creation – Accelerates exploration potential at Velardeña Complementary management teams will focus on
Slide 16: Indicative Timetable
Indicative Timetable June 24, 2011 Transaction announcement (TSX and NYSE Amex) Mail securityholder meeting documentation to securityholders Late July 2011 – Proxy statement for Golden Minerals securityholders – Management information circular for ECU securityholders August 2011 Securityholder
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