NR - Golden Phoenix Secures $1 Million Bridge LoanGolden Phoenix Secures $1 Million Bridge Loan to Advance Santa RosaGold Mine in Panama; Enters Into Term Sheet for $15.5 Million GoldStream Debt Facility
SPARKS, NV, Aug 04, 2011 --Golden Phoenix Minerals, Inc. (the "Company") (OTCBB: GPXM) is pleasedto announce it has closed a $1 million bridge loan facility fromWaterton Global Value, L.P. ("Waterton") to complete its phase two,45-day due diligence period in furtherance of acquiring an interest inthe Santa Rosa gold mine in Panama ("Santa Rosa Project"), and signeda Term Sheet ("Term Sheet") with Waterton to obtain a $15.5 milliongold stream debt facility to fast track the financing and developmentof the Santa Rosa Project.
Pursuant to the Term Sheet, definitive agreements arecontemplated to provide for $15,500,000 USD in a draw down facility thatreflects Golden Phoenix's earn-in obligations to acquire the majorityof the anticipated 60% joint venture interest in the Santa RosaProject.
The debt facility and bridge loan will be secured by a perfectedlien on, and a first priority security interest in, all of thetangible and intangible properties and assets of the Company and itssubsidiaries, including its interest in Mineral Ridge Gold LLC.
In addition, simultaneous with closing the bridge loan, GoldenPhoenix has granted Waterton an option and right of first offer topurchase its interest in the Mineral Ridge property in Nevada, for anamount that shall be based on measured, indicated and inferred goldounces at the Mineral Ridge property at the time of the acquisition,which option may be exercised no sooner than nine months from theclosing of the bridge loan transaction. Contemporaneously with signingthe option, the Company has delivered to Waterton a consent/waiver ofScorpio Gold (US) Corporation in which Scorpio has waived any right(including any right of first offer) that it may possess that wouldlimit or hinder the ability of the Company to sell or offer itsinterest to Waterton under the option agreement.
"The anticipated completion of the gold stream debt facilitygives Golden Phoenix the opportunity to establish the potential formineral resource growth while minimizing dilution to our equityshareholders," stated Tom Klein, CEO of Golden Phoenix. "Over the pastyear, we have developed and expanded the Company's asset portfolio,which has provided us the flexibility to attract debt financing inlieu of equity."
Please visit the Golden Phoenix website at:
www.goldenphoenix.us.
About Golden Phoenix: Golden Phoenix Minerals, Inc. is aNevada-based mining company whose focus is Royalty Mining in theAmericas. Golden Phoenix is committed to delivering shareholder valueby identifying, acquiring, developing and joint venturing gold, silverand strategic metal deposits throughout North, South and CentralAmerica. Golden Phoenix owns, has an interest in, or has entered intoagreements with respect to mineral properties located in the UnitedStates, Canada and Peru including its 30% interest in the MineralRidge gold project near Silver Peak, Nevada.
Forward Looking Statements: Information contained hereinregarding optimism related to the business, expanding exploration,development activities and other such statements are "forward-lookingstatements" within the meaning of the Private Securities LitigationReform Act of 1995 and are subject to the safe harbors created thereby.While Golden Phoenix believes such statements are reasonable, they arebased on current expectations, estimates and projections about theCompany's business and are not guarantees of future performance andinvolve certain risks and uncertainties that are difficult to predict.Actual results could vary materially from the description containedherein due to many factors including continued market prices for theCompany's mineral products, domestic and international business andeconomic conditions, and other risk factors listed in the Company'sSecurities and Exchange Commission (SEC) filings under "risk factors"and elsewhere. The Company does not undertake any obligation to updateany forward-looking statement to reflect events or circumstances afterthe date of this press release.
For More Information Contact: Robert Ian Director of Corporate Communications (702) 983-0469 investor@goldenphoenix.us