Golden Minerals Company announced on January 2 2026 that it had finalized the sale of its wholly‑owned Mexican subsidiaries, Servicios Velardeña S.A. de C.V. and GMC Equipos S.A. The transaction was actually completed on December 30 2025, with the company receiving approximately $65,000 in proceeds while eliminating about $566,000 in liabilities, including $60,000 in accounts payable, a $56,000 labor claim, and a $450,000 asset‑retirement obligation for the Rodeo mining concession.
The net effect of the sale is a modest cash inflow that offsets a significant reduction in the company’s balance‑sheet obligations. By removing the subsidiaries’ liabilities, Golden Minerals improves its liquidity profile and reduces the risk of future cash‑flow constraints. The proceeds, while small relative to the company’s overall cash position, provide a buffer that can be deployed toward exploration or other strategic initiatives.
Prior to the sale, Golden Minerals reported a net loss of $2.4 million in Q3 2025 and held $1.7 million in cash and equivalents. The company’s cash runway was already under pressure, with management warning that liquidity could be exhausted by the second quarter of 2026 if additional funding was not secured. The divestiture therefore represents a critical step in extending that runway, even as it does not eliminate the underlying profitability challenges.
Strategically, the company is pivoting from a production‑focused model to a lean exploration shell. The sale allows Golden Minerals to concentrate resources on its remaining exploration projects in Argentina—such as the Sarita Este project—and Nevada, including the Sand Canyon site. By shedding non‑core operations, the company aims to streamline costs and focus on high‑potential exploration assets.
While the removal of liabilities improves the balance sheet, Golden Minerals still faces a tight liquidity environment. The company’s net losses and limited cash reserves mean that additional financing or a successful monetization of its exploration assets will be necessary to avoid a liquidity cliff in Q2 2026. The sale, however, signals management’s commitment to cost discipline and a clearer focus on core exploration opportunities.
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