Overview

• Prior to the transaction, Andean Precious Metals Corp. (“Andean”) owned and operated a silver mine in Bolivia with annual production of ~5 Moz Ag
• Andean was looking to diversify into North Americas with a focus on producing or near-term producing precious metal assets

MPA’s Role and Key Considerations

• MPA was engaged as an Exclusive Financial Advisor to Andean with respect to certain strategic alternatives 
• MPA understood the Andean’s need for geopolitical diversification and to alleviate their single asset risk which both impacted the valuation and market awareness of the Client
• After an extensive review of acquisition targets, Golden Queen Mining which wholly owns and operates the Soledad Mountain mine and heap leach operation in Kern County, California, was identified as an attractive opportunity for the Client to pursue
• MPA successfully positioned the Client in a competitive auction process as the frontrunner with an attractive deal structure for the Client and assisted with site visits, due diligence process, internal and external marketing material, and definitive documentation

Outcome

• Andean announced its acquisition of 100% interest in Golden Queen Mining Company LLC for US$66 million
• The transaction structure achieved management’s goal of preserving the company’s liquidity to pursue other growth opportunities while significantly increasing annual production