Golden Phoenix Completes Initial Due Diligence Period on Santa RosaGold Mine; Begins Finalizing Definitive Joint Venture Agreement
SPARKS, NV, Aug 08, 2011 --Golden Phoenix Minerals, Inc. (the "Company") (OTCBB: GPXM) is pleasedto announce that on August 3, 2011 it informed Silver Global, S.A.("Silver Global") that it had successfully completed its initial72-hour due diligence analysis of the Santa Rosa Gold Mine ("SantaRosa") in Panama, after it received and reviewed all due diligencematerials requested from Silver Global, and is now proceeding to thesecondary due diligence period which is expected to be completedwithin 45 days, pursuant to the letter of intent agreement ("LOI")announced in the Company's news release dated July 12, 2011.
As part of the initial due diligence analysis, Golden Phoenixreceived confirmation and certifications from both Silver Global andthe Director of Mineral Resources of Panama of the Ministry ofCommerce and Industry, certifying that Silver Global is the sole andexclusive owner of such real and personal property and necessaryconcessions constituting the property known as the Santa Rosa GoldMine, free and clear of any liens, mortgages or third party interestsof any kind. Specifically, the Director of Mineral Resources certifiedthat Silver Global owns such concessions granting surface miningrights for gold and other minerals and exploration mining rights withrespect to the property, all of which are in good standing and incompliance with all legal requirements.
The Director also certified that Mineral Mining PLC, which hasclaimed some form of ownership of the Property via various statementson its website, has not formalized any concession request related tothe property, nor does this company have any concession contract,authorization, permit or certification whatsoever, which would permitsuch company to engage in mining in Panama. Likewise, Silver Globalsubmitted counterpart certifications confirming that it has neverentered into any agreement, arrangement or other relationship withMineral Mining PLC, Erin Ventures or any other individuals or entitiesregarding the Property.
Tom Klein, CEO of Golden Phoenix, comments: "Golden Phoenixlooks forward to working with Silver Global to complete our final duediligence and formalize the definitive joint venture agreements forthe Santa Rosa gold mine."
Tony Bonilla, President of Silver Global, comments: "SilverGlobal anticipates a successful completion to Golden Phoenix's duediligence efforts and the finalization of our joint venture agreementwhich we expect will advance Santa Rosa into operation andproduction."
In connection with Golden Phoenix proceeding to the secondarydue diligence period, expected to be completed within 45 days, theCompany paid Silver Global a non-refundable cash payment of $500,000,as well as confirmed release from trust and issuance of shares ofCompany common stock at a deemed aggregate value of $500,000, based ona per share price of
.18. Accordingly, one half of the initial goodfaith deposit of shares of common stock in Silver Global's name beingheld in trust, or $500,000 of the shares deposited out of the aggregatedeemed amount of $1,000,000 of shares, based on
.18 per share,shall be returned to the Company for cancellation.
During the second due diligence period, in which GoldenPhoenix and Silver Global are bound by exclusivity provisions, finaldue diligence efforts and definitive agreements are anticipated to becompleted pursuant to the LOI, which provides a framework of terms forGolden Phoenix to earn in to a potential 60% joint venture interestin the Santa Rosa Gold Mine.
Although the parties anticipate completing due diligence andentering into definitive agreements in the near future, there can beno assurance that such definitive agreements will be executed, thatthe Company will earn in to the full interest in the Santa Rosaproperty that it anticipates or that such joint venture willultimately succeed.
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.
About Silver Global: Silver Global is a Panama-based miningcompany whose focus is to identify and develop mining opportunities inthe Republic of Panama. Silver Global is committed to deliveringshareholder value by identifying, acquiring, developing and jointventuring gold, silver and strategic metal deposits throughout Panama.Silver Global is the sole owner of Mina Santa Rosa Panama and isproceeding with finalizing due diligence and definitive joint ventureagreements with Golden Phoenix for the development of Mina Santa RosaPanama.
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