Golden Phoenix Minerals, announced this morning the signing of a partially binding Letter of Intent to acquire a 60% interest, with an option to buy an additional 20% interest upon achieving certain milestones, in the Santa Rosa gold mine located in Panama and owned by Silver Global, S.A., a Panamanian corporation.
The Santa Rosa gold mine was in production from 1996 to 1998 and was operated by Greenstone Resources Ltd. The mine produced over 100,000 ounces of gold during this period. Low gold prices and significant debt resulted in Santa Rosa being shutdown in 1999 and the subsequent bankruptcy of Greenstone.
Golden Phoenix proposes to earn-in to a 60% interest in Santa Rosa with an option to acquire an additional 20% interest after achieving certain milestones, in consideration for $20,500,000 in cash over time and $4,500,000 in shares of Golden Phoenix common stock (at a deemed value of $0.18 per share), as well as certain preferential payments from cash flow out of gold production.
Commenting in the release, Golden Phoenix CEO, Thomas Klein stated: “The Santa Rosa gold mine opens up the potential for significant organic growth within Golden Phoenix. We have begun our due diligence process and look forward to working closely with the team at Silver Global.”
Golden Phoenix will be conducting a Q2 2011 Shareholder Conference Call today (July 12, 2011) at 1:00pm pacific time to discuss start of gold production at the Mineral Ridge gold project in Nevada.
Instructions for joining the call are available at: http://finance.yahoo.com/news/Golden-Phoenix-Q2-2011-iw-3007287869.html?x=0&.v=1