Golden Queen Mining Co. Ltd. received a preliminary, nonbinding proposal from Chairman and CEO Thomas Clay, on behalf of certain members of the Clay family and associated entities, to fully acquire company unit Golden Queen Mining Co. LLC.

In return, the Clay Group would cancel the company's notes and debts it holds under a November 2016 agreement, give up all shares, warrants and options in the parent company, and make a cash payment and "other good and valuable consideration."

The company said Jan. 8 that it set up a special committee of independent board members to evaluate the proposal and explore potential alternatives.

Golden Queen Mining Co. Ltd. owns a 50% stake in an open pit, heap leach mining operation on the Soledad Mountain gold-silver property in Kern County, Calif.