Golden Minerals Company
PROJECT PIPELINE – Advanced Exploration Stage Project

El Quevar

Title and Ownership Rights
Argentina is one of relatively few countries in which mineral rights are owned by the provinces, not by the central (federal) government. The Federal Constitution vests mineral rights with the provinces, which administer claims and assess royalties, although increasingly in line with Federal policies. Under the Federal Mining Code, which is adhered to by all provinces, minerals are divided into several categories including metal ores and construction materials.

The El Quevar project encompasses approximately 57,000 hectares and includes 31 mining concessions we hold directly. We are required to pay a 1% net smelter return royalty on the value of all metals extracted from the El Quevar II concession and a 1% net smelter return royalty on one-half of the minerals extracted from the Castor concession to the third party from whom we acquired these concessions. We can purchase one half of the royalty for $1 million in the first two years of production. The Yaxtché deposit is located primarily on the Castor concession. We may also be required to pay a 3% royalty to the Salta province based on the net smelter value of minerals extracted from any of our concessions less costs of processing. To maintain all of the El Quevar concessions, we paid canon payment fees to the Argentine government of approximately $0.1 million per year in 2016 and 2017.

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