Golden Phoenix Minerals, Inc.
Golden Phoenix is a U.S. mineral exploration and development company with a current growth strategy focused on the expansion of operations through the development of gold and silver mineral properties into joint ventures or royalty mining projects. Our current efforts are focused on Nevada.
Golden Phoenix Operations
We have entered into an agreement to acquire an 80% interest in the Vanderbilt Silver and Gold Project, the Coyote Fault Gold and Silver 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 (the "Mhakari Properties"). In addition, we entered into an agreement to acquire the rights to 16 unpatented lode mining claims on BLM lands in Esmeralda County, Nevada, also located near the Mineral Ridge property (the "North Springs Properties").
We have contracted the professional mining services of Cardno MM&A ("Cardno") to perform the technical evaluation of our Nevada mineral properties. We began first round evaluation on the Vanderbilt property, which we believe is a viable gold and silver exploration project. With the assistance of Cardno, we are currently permitting an exploration drilling program including up to 20 exploration drill holes using reverse circulation ("RC"). Other highlights include establishing survey control of the property's three patent claims from 1876, contracting heavy equipment for access road improvement and drill pad construction, and establishing a strong, positive relationship with the local lead regulator office. We have also spent time evaluating the North Springs Properties, and have decided to defer future work on them.
Because of lack of funds and scaling back our operations, we allowed the remainder of our mineral property claims interests to lapse in 2013, and we have abandoned such other projects to focus on our Nevada properties, which in the opinion of management have the best potential for success.
As funding permits, we intend to continue to strategically acquire, explore and develop mineral properties. We plan to provide joint venture opportunities for mining companies to conduct exploration or development on mineral properties we own or control. We, together with any future joint venture partners, intend to explore and develop selected properties to a stage of proven and probable reserves, at which time we would then decide whether to sell our interest in a property or take the property into production alone or with our future partner(s). By joint venturing our properties, we may be able to reduce our costs for further work on those properties, while continuing to maintain and acquire interests in a portfolio of gold and base strategic metals properties in various stages of mineral exploration and development. We expect that this corporate strategy will minimize the financial risk that we would incur by assuming all the exploration costs associated with developing any one property, while maximizing the potential for success and growth.
We have completed the sale of our 10% ownership interest in the Santa Rosa, Panama gold project for $US 2.6 million. In February 2014, we received $260,000 of the sales proceeds and received the balance of $2,340,000 in April 2014, net of certain fees and taxes. This funding has allowed us to pay or settle liabilities and has provided working capital.
In October 2014, we participated in a private placement in Ximen Mining Corp. ("Ximen"), a Canadian publicly listed mineral exploration company, with an investment of $124,000. We purchased 450,000 units consisting of one common share and one non-transferable warrant entitling us to purchase one further common share of Ximen at an exercise price of $0.40 per warrant share for a period of two years. Ximen is focused on the exploration and development of gold projects in southern British Columbia and currently has a 100% interest in two properties: the Gold Drop Project and the Brett Gold Project.