Golden Minerals Company (TSX: AUM) (PINKSHEETS: GDMN) recently announced that the Company has entered into an agreement to sell, on a private placement basis, 745,318 shares of common stock of the Company to The Sentient Group, an independent private equity firm that manages over $1.3 billion of investments in the global resources industry, at a price of C$7.06 per share. Upon closing of the placement, Sentient will become the Company's largest stockholder, holding 19.9% of the Company's unrestricted common stock.
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Completion of the transaction is subject to several customary closing conditions, including final Toronto Stock Exchange approval. The proceeds of this offering will be used primarily for the advancement of the El Quevar project, the Company's advanced stage silver exploration project in northwestern Argentina. The Company and Sentient have been in discussions since April 2009 regarding a potential investment in the Company. The price of the placement was established on December 7, 2009 under price protection rules of the TSX and reflects a premium to the 5-day volume weighted average price on that day. As part of the placement, Sentient will have the right to purchase additional shares concurrent with the Company's proposed public offering pursuant to a long form prospectus that has been filed with securities administrators in certain provinces in Canada and a Registration Statement on Form S-1 that has been filed with the Securities and Exchange Commission in the United States (the "Public Offering"). Sentient has expressed its intention to purchase an amount of common stock necessary to maintain its pro-rata ownership concurrent with the closing of the Public Offering.
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