Mining Team In Place; Golden Eagle's Consolidation Move Vital Next Step in
Preparing for Opening of First Large Scale Mine in Bolivia's Tipuani Valley
SALT LAKE CITY, Jun 26, 2001 (BUSINESS WIRE) -- Golden Eagle International Inc.
(OTCBB: MYNG) Tuesday announced the consolidation of all of its Bolivian
operations, mining assets and mining claims into one wholly owned Bolivian
subsidiary, Golden Eagle International Inc. (Bolivia) (GEIIB).
"The new subsidiary, which will be 100 percent owned and operated by Golden
Eagle International Inc. (GEII), effectively brings together all of GEII's
efforts toward its strategic plan in Bolivia under a single corporate umbrella
in a manner GEII expects will improve the efficiency of its Bolivian operations.
"This is an extremely important move toward being ready to implement our 11,000
ton-per-day mine plan once funding is in place," stated Golden Eagle President
and Chief Executive Officer Terry C. Turner.
Golden Eagle's activities in Bolivia to date have been in three, separate areas:
-- GEII has previously conducted its exploration and operations
in Bolivia, as well as held its equipment and machinery, in
Golden Eagle Bolivia Mining, S.A. ("GEBM"), which is 93
percent owned by GEII.
-- Contract rights covering the initial 5,000 acres in Cangalli,
Bolivia, which the company has explored for the past five
years, were held in Eagle Mining of Bolivia Ltd. ("Eagle
Mining"), which is 84 percent owned by GEII.
-- Additionally, 69,000 acres in mining claims contiguous to the
initial contract claims in the Tipuani Gold Mining District
are held by GEII as a foreign corporation in Bolivia.
"In the past, this organization of subsidiaries was a prudent and tactical
method of operation," Turner explained. "Now, however, our management is
confident that for both strategic and legal reasons, as well as operational
efficiency, this consolidation is an important next step in our progress toward
production," Turner concluded.
Golden Eagle does not anticipate any adverse tax or accounting consequences.
"This consolidation should be completed by mid-July and follows on the heels of
the major step we took recently on our critical path to opening our Chaco Mine,
which was the naming of the noted Bolivian geologist, Giovani Viscarra, Ph.D.,
as our mine superintendent," Turner said.
"The addition of Dr. Viscarra completes our assembly of a mining management
team, including several former executives from major mining companies, headed by
Ronald Atwood, Ph.D., former director of research for Newmont Mining and holder
of numerous patents in the field of extractive metallurgy," Turner added.
According to Turner, Atwood, who serves as the company's vice president of
operations and development, leads "an experienced team of mining professionals,"
as Golden Eagle moves forward on its mine preparations.
"It's quite a challenge, and an exciting one," confided Turner. "But we believe
the team of mining professionals we have assembled for the job is more than up
to it."
Those on the team also include Max S. Staheli, MBA, a current Golden Eagle
director, and the former controller of Barrick Gold's South American Operations;
Donald Hausen, Ph.D., a well-known consultant and former chief mineralogist for
Newmont Mining, as well as chairman of the Process Mineralogy Committee of the
SME-AIME; and Henry (Rick) Sandri, Ph.D., a former vice president of planning
and business development for INCO Ltd., and a former senior associate of Behre
Dolbear & Co. Inc.
Completing Golden Eagle's mining team involved in planning and implementing the
company's projected large volume operation in Bolivia are Mac Delozier,
currently Golden Eagle's administrative vice president, with over 30 years of
management experience in Bolivia; and Victor Hugo Bretel, currently Golden
Eagle's General Manager, a graduate of Peru's Technical University of
Engineering in Lima, experienced in civil works and earthmoving.
Turner concluded, "With our mine plan ready to be implemented, and our
operations and management team now in place, we decided that it was imperative
to consolidate the company's various component parts into one, wholly owned
subsidiary. This consolidation through the creation of Golden Eagle
International Inc. (Bolivia) puts us one step closer to our goal."
Golden Eagle International Inc. is a gold exploration and mining company located
in Salt Lake City. The company is currently focusing its efforts on developing
its mining rights in the Tipuani Gold Mining District in Bolivia. For more
information about the company, call Sabrina Martinez at 801/619-9320. Media
inquires should also be directed to Martinez.
Golden Eagle can also be found at its website: www.geii.com, where management
recommends that all shareholders and prospective shareholders review its Annual
Reports on Form 10-KSB, Quarterly Reports on Form 10-QSB and Current Reports on
Form 8-K.
Forward-Looking Statements and Disclosure of Risk
The future conduct of Golden Eagle's business and its response to issues raised
by third parties are dependent upon a number of factors, and there can be no
assurance that Golden Eagle will be able to conduct its operations as
contemplated. Certain statements contained in this release using the terms
"may," "expects to," and other terms denoting future possibilities, are
forward-looking statements.
The accuracy of these statements cannot be guaranteed as they are subject to a
variety of risks that are beyond Golden Eagle's ability to predict or control
and which may cause actual results to differ materially from the projections or
estimates contained herein.
These risks include, but are not limited to, the risks described in the above
press release; those risks set out in Golden Eagle's disclosure documents and
its annual, quarterly and current reports; and the other risks associated with
start-up mineral exploration operations with insufficient liquidity, negative
working capital, and no historical profitability.
Golden Eagle disclaims any obligation to update any forward-looking statement
made herein.
CONTACT: Golden Eagle International Inc., Salt Lake City
Sabrina Martinez, 801/619-9320
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KEYWORD: UTAH INTERNATIONAL LATIN AMERICA
INDUSTRY KEYWORD: MINING/METALS
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