Scorpio Gold Corporation (Scorpio) (TSX-V: SGN) wishes to respond to a letter it received today from its joint venture partner Golden Phoenix Minerals (GP) and GP's news release of today, purporting to replace Scorpio as manager of the Mineral Ridge gold mine.
Scorpio has instructed its legal counsel in Nevada to take immediate action to stop this ridiculous notion in its tracks. GP has no basis or authority under the joint venture operating agreement to remove or replace Scorpio as manager, nor does GP have the expertise or personnel to manage an operating gold mine. This action by GP, and the slanderous statements that accompany it, are a desperate attempt to deflect attention from GP's tenuous position with its lender Waterton, who Scorpio understands is involved in proceedings to seize GP's interest in Mineral Ridge.
Scorpio has at all times operated the Mineral Ridge project in material compliance with the joint venture operating agreement and mining industry standards and will vigorously defend its position in all court proceedings in this matter and, where appropriate, seek damages for inaccurate and wrongful slander of its reputation.
For additional information please see the Company's website at www.scorpiogold.com.
ON BEHALF OF THE BOARD
SCORPIO GOLD CORPORATION
Peter J. Hawley,
President & CEO
For further information contact:
Peter J. Hawley Tel: (819) 825-7618
Jim Macdonald, Torrey Hills Capital
Tel: (858) 456-7300