Golden Minerals Seeks C$5 Million as Funds Could Run Out by Year-End

Golden Minerals plans to raise up to C$5 million after warning that its available funds could run out by year-end 2026, leaving the exploration company at risk of liquidation.

The proposed private placement would sell as many as 17,857,142 units for C$0.28 each. Each unit includes one common share and half of a warrant. Each whole warrant would allow its holder to buy one share for C$0.45 for up to 24 months after closing. Golden Minerals could shorten that period if the stock’s volume-weighted average price exceeds C$0.90 for 10 consecutive trading days and it gives holders notice. The company expects the placement to close on or about Nov. 9, subject to Toronto Stock Exchange approval and other conditions.

Golden Minerals described itself as being in “serious financial difficulty” and warned of the “prospect of imminent liquidation” if it cannot secure financing. It has asked the TSX for a financial-hardship exemption from shareholder-approval requirements, saying a vote could not be held in time to meet its liquidity needs. A committee of nonparticipating board members recommended the exemption after determining the company was in serious financial difficulty and the offering was designed to improve its financial position.

At the maximum offering size, as many as 27,857,141 shares could be issued or become issuable, including shares tied to offering and finder warrants. Golden Minerals estimates its fully diluted share count would rise from 29,465,714 to 57,322,855, an increase of about 94.5%. The company also expects a remedial delisting review under TSX rules.

The company plans to use the proceeds for exploration, forecast spending through the end of 2027, a July 2027 option payment for its Desierto project in Argentina, liability reduction and working capital. It says continued work at Desierto is needed to preserve drilling permits that would otherwise expire in December 2026. Golden Minerals cited the lack of revenue-producing operations and ongoing project funding needs in its warning.

The year-end cash warning is shorter than the outlook in the company’s July 28 quarterly filing, which projected that cash would fund operations into early to mid-2027. The filing reported US$2.5 million in cash and cash equivalents and about US$1 million in current liabilities as of June 30, and disclosed substantial doubt about the company’s ability to continue as a going concern. Those figures are historical; the Oct. 26 announcement did not give a current cash balance.