GOLDEN, CO--(Marketwire - March 28, 2012) - Golden Tag Resources Ltd.</b> (TSX VENTURE: GOG) and Golden Minerals Company </b>(NYSE Amex: AUMN) (TSX: AUM) jointly announce the signing of an amendment to a 2005 Joint Venture Agreement ("JVA") governing their San Diego silver exploration project. Golden Minerals holds its interest in the JV through ECU Silver, now a wholly owned subsidiary. Under the JVA amendment, Golden Tag has acquired the right to increase its interest in the JV to 60% by solely funding US $3 million of additional exploration expenses within the next 24 months. In order to increase to 60%, Golden Tag must incur and solely fund at least US $1 million of exploration costs in the first 12 month period and at least US $500,000 of costs in each of the final two six month periods. Golden Tag will become the designated operator of the JV for the additional programs and beyond as long as it completes the required funding in a timely manner. Under the 2-year amendment, exploration costs by Golden Tag are optional, except for mandatory costs related to keeping the property in good standing. As part of the JV amendment Golden Tag and ECU Silver have enhanced the mutual piggyback rights contained in the JVA so that each party has the right to require the other to include it in a transaction involving a direct or indirect sale of 100% of the San Diego project if the transaction meets certain minimum requirements and in addition Golden Tag can require that ECU participate in such a sale.
Golden Tag President Marc Carrier commented, "We are pleased with this amendment which allows Golden Tag to prioritize the San Diego silver project for the benefit of both companies. We believe that the next $3 million spent in exploration may prove pivotal in understanding the San Diego deposit and we look forward to aggressively advancing the next phases of work."
Golden Minerals CEO Jeff Clevenger said, "This amendment to the JV agreement is the first step in Golden Minerals' announced strategy to reduce or monetize our exploration efforts outside of core assets. San Diego is a large system and the project is now set to advance with Golden Minerals maintaining a significant interest going forward."