Golden Phoenix Minerals is a mining company focused on driving shareholder value through the identification and development/joint venturing of precious and other strategically valuable metals in the Americas, with substantial interests ranging from the Company’s base in Nevada, to Canada and Peru. The Company announced a new growth move along these lines today with the signing of a partially binding letter of intent with Silver Global, S.A., to acquire 60% interest in (with an additional 20% available for purchase via achievement of milestones) the Santa Rosa gold mine in Panama.
Both companies have mutually agreed to a binding exclusivity/standstill period during the performance of due diligence associated with preparations and the negotiation of certain definitive agreements. The deal calls for a payment of some $20.5M over time and $4.5M in common shares of GPXM stock (deemed value of $0.18/share), in addition to future preferential payments from generated cash flow associated gold production.
CEO of GPXM, Thomas Klein, called this move a bold decision for the Company and thoroughly in line with their business strategy/philosophy. Klein indicated that this move would generate massive organic growth for the Company and that rigorous due diligence, tightly integrated with the team at Silver Global, was already underway to shore up any loose ends.
President of Silver Global, Tony Bonilla, cited the demonstrated technical expertise for which GPXM is known throughout the industry as being chief among the reasons Silver Global was so eager to work with the Company. Bonilla pointed to the excellent work in Nevada at the Company’s Mineral Ridge property as abundant evidence why the reopening of the Santa Rosa mine will not only infuse the local economy of Cañazas, but lead to a long and mutually beneficial string of gold sales.