(The PIPEs Report) October 12, 2010 – Sentient Group, a Cayman Islands-based private equity firm that focuses on the natural resources industry, invested $19.2 million in a private placement of common stock by Golden Minerals Co., a silver mining company with operations in Mexico, Peru and Argentina.
The Golden, Colo.-based company issued 1.04 million shares priced at $18.50 each, reflecting a discount of 14.2% to Golden Minerals’ closing share price last Thursday. Sentient Group was already Golden Minerals’ biggest shareholder with a 19.6% stake. After the offering, Sentient’s stake is 19.9%. In January, Sentient invested $5.68 million in another PIPE by Golden Minerals.
The offering was underwritten by Canaccord Genuity, Dundee Securities, Haywood Securities, Rodman & Renshaw, Roth Capital Partners, and Scarsdale Equities.
Golden Minerals said it plans to use the proceeds for working capital and other general corporate purposes. The company has previously said it plans to spend $19 million in the second half of 2010 on the completion of a feasibility study of its El Quevar project in northwestern Argentina.
Golden Minerals reported a net loss of $10.7 million for the first half of this year, compared with profit of $243.6 million a year earlier.
Metals and mining companies have raised at least $1.23 billion in 86 PIPEs this year.