06:49 AM EDT, 05/10/2024 (MT Newswires) -- Golden Minerals Company ( AUMN ) entered Friday into a definitive agreement to sell the primary assets comprising its Velardena Properties, located in Durango State, Mexico.

On April 29, 2024, a statement noted, two of Golden's Mexico subsidiaries, Minera William S.A. de C.V. and Minera Labri S.A. de C.V. entered into certain asset purchase and sale agreements with a privately held Mexican company whereby Minera William and Minera Labri agreed to sell certain mining concessions, equipment, land parcels and other assets to the buyer in exchange for an aggregate purchase price of US$5.5 million in cash, plus Value-Added Tax.

The assets being sold include the Velardena and Chicago mines, both of the company's oxide and sulfide processing plants and related equipment.

Under the terms of the sales agreements: on April 29, 2024, the buyer paid a non-refundable advance payment of $1.0 million in cash to the company; and on May 20, 2024, the buyer shall pay $2.0 million in cash, plus VAT (including VAT on the advance payment), to the company, and on July 1, 2024, the buyer shall pay $2.5 million in cash, plus VAT, to the company.

Separately, the company announced that the previously disclosed settlement agreement between Minera William and Unifin Financiera S.A.B. de C.V., which related to a lawsuit between the entities, was granted final court approval. As previously communicated, under the terms of the settlement agreement, Minera William agreed to pay $250,000 to Unifin in exchange for Unifin's withdrawal of the lawsuit and release of Minera William from any future claim related to the dispute.