Subsequent Events

9 Months Ended

Sep. 30, 2011

Subsequent Events

Subsequent Events

20.   Subsequent Events

Private Placement

On October 7, 2011, the Company completed a private placement (the “Private Placement”) to certain investment funds managed by The Sentient Group (“Sentient”) of 4,118,150 shares of the Company’s common stock at a price of $7.44 per share, resulting in net proceeds to the Company of approximately $30.6 million after costs related to the transaction of less than $0.1 million.  Sentient is an independent private equity firm that manages investments in the global resources industry. As a result of the Private Placement Sentient holds approximately 19.9% of the Company’s outstanding common stock as compared to approximately 9.4% immediately prior to the Private Placement.  Sentient held approximately 19.9% of the Company’s common stock prior to the Company’s acquisition of ECU (excluding restricted common stock held by the Company’s employees).  In conjunction with the Private Placement, the Company agreed to register with the Securities and Exchange Commission the common stock purchased by Sentient no later than March 31, 2012 with an effective date for the registration no later than June 30, 2012.  If the Company is unable to meet these deadlines, it may be subject to a penalty up to a maximum amount of 3.0% of the aggregate purchase price.

Following is an unaudited, condensed consolidated pro-forma balance sheet that was prepared as if the Private Placement had been completed on September 30, 2011.  Actual amounts recorded may vary from these pro-forma amounts pending a final determination of costs associated with the offering.  These unaudited condensed consolidated pro forma financial statements should be read in conjunction with our historical financial statements as of September 30, 2011 included in this Form 10-Q.

Golden Minerals Company

Condensed Consolidated Pro-Forma Balance Sheet

September 30, 2011

(Expressed in United States dollars)

(Unaudited)

				Pro-Forma
				Adjustments
				to Reflect the
				Public Offering
	Historical			And			Pro-Forma
	Amounts			Private Placement		Note	Amounts
	(in thousands, except share data)
Assets
Current assets
Cash and cash equivalents	$	54,979		$	30,639	(a)	$	85,618
Other current assets	6,044			—			6,044
Total current assets	61,023			30,639			91,662
Property, plant and equipment, net	381,876			—			381,876
Other long term assets	936			—			936
Total assets	$	443,835		$	30,639		$	474,474
Liabilities and Equity
Current liabilities	$	33,214		$	—		$	33,214
Long term liabilities	87,350			—			87,350
Total liabilities	120,564			—			120,564
Equity
Common stock, $.01 par value,	314			41		(a)	355
Additional paid in capital	422,911			30,598		(a)	453,509
Accumulated deficit	(99,810		)	—			(99,810		)
Accumulated other comprehensive income (loss)	(144		)	—			(144		)
Total equity	323,271			30,639			353,910
Total liabilities and equity	$	443,835		$	30,639		$	474,474

(a) This pro-forma adjustment reflects the issuance of 4,118,150 shares in the private placement at $7.44 per share resulting in net proceeds to the Company of approximately $30.6 million after costs related to the transaction of less than $0.1 million.

Prepayment of Long Term Debt

On October 31, 2011, the Company notified the lenders of its intent to prepay all amounts outstanding under the Term Loan.  Prepayment of the Term Loan will require payment of a cancelation fee totaling approximately $0.5 million.  The Company expects the prepayment to occur in November 2011.