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Golden Phoenix Minerals Inc GPXM

Golden Phoenix Minerals, Inc. is a mining and exploration company. The Company's business includes acquiring mineral properties with production through exploration discoveries. The Company has property holdings in the Silver Peak Mining District near Tonopah, Nevada. The Company is focused on its mining properties in Nevada. The Company has entered into an agreement to acquire an interest in the Mhakari Properties, which include the Vanderbilt Silver and Gold Project, the Coyote Fault Gold and Silver Project and Galena Flat Gold Project, and claims that are an extension to the Coyote Fault property, all located adjacent to the producing Mineral Ridge property near Silver Peak, Nevada. As of September 30, 2015, the Company had the rights to 16 unpatented lode mining claims in three claim blocks consisted of 320 acres on Bureau of Land Management (BLM) lands in Esmeralda County, Nevada, located near the operating Mineral Ridge gold project (the North Springs Properties).


GREY:GPXM - Post by User

Post by Rocks123on Apr 22, 2012 9:25pm
452 Views
Post# 19822698

Waterton

Waterton

Ok. So it looks as though GPXM borrowed money from the "lenders of last resort", Waterton. Does that mean they are crooks or shady characters as some would suggest. They have identified a niche and clearly cover their "ass"ets  with iron clad contracts.

 

You cannot excuse the facts the GP entered into an absolutely foolish deal in which they committed to payments based on the thought, hope , belief that SGN would provide the information on a timely basis. They have never once indicated the contacts with Scorpio had a timeline that had to be met or a breach would occur. As long as SGN produces the reports, they will have met their obligations. Are we to blame SGN for the inexperience of the GP mngt team who did the deal with Waterton. I even wonder if the GP folks even read the contracts they signed>? They certainly had no backstops in place and as far as i am concerned, and they deserve their fate. You can't blame Waterton if GP mngt is dense.

 

Now, of more concern, Waterton is SGN's secured lender. Not sure I am very comfortable right now and I wonder what,  if any time bombs are ticking in their contracts. I would be looking for a new lender if I were SGN. Something tells me that if something were to delay commercial production, Waterton would be owning the MR property 100% Is this why SGN has to sell all tehgold to Waterton?

 

Waterton will most certainly be picking up 30% from GP unless GP can produce a smoking gun and prove that SGN and Wateron conspired to work against GP.

 

But you cannot forgive GP for entering into what turns out to be one of the dumbest moves in mining.

 

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