Golden Phoenix Reduces Liabilities and Retires Over $520,000 in Debt
Thursday June 28, 11:22 am ET
SPARKS, Nev., June 28 /PRNewswire-FirstCall/ -- Golden Phoenix Minerals, Inc. (OTC Bulletin Board: GPXM - News), is pleased to announce that it has successfully exercised its option to reduce its Schnack Note through investment by an institutional ally. The transaction eliminates approximately $521,000 in debt and reclassifies approximately $1,974,000 from notes payable to deferred revenue within current liabilities on the Company's balance sheet, in the form of a Net Smelter Return (NSR).
This transaction follows the replacement of the original Schnack Note with an Advance Sales Restructuring Agreement executed May 10, 2007. The Agreement allowed the Company to convert its liability on the original Note to a 5% NSR, and to reduce the Note's original face value by $700,000, provided payment was completed by the end of August. The agreement also allowed the Company to assign its option to a third party to accomplish this buy down. The Company has completed this transaction with an institutional investor.
David Caldwell, CEO of Golden Phoenix, explained, "Bill Schnack, the original lender, stepped forward to finance construction of the Ashdown mine early in our restructuring process. We thank him for his faith in us and welcome the strong institutional backing that replaces him. Since the start of the restructuring campaign over two years ago, the Company has significantly and methodically reduced its current liabilities. This latest transaction allows us to manage our cash flow more effectively. The result is both a reduction in net liabilities and the controlled retirement of the balance, helping to preserve cash flow for future growth."
Please visit the Golden Phoenix website at golden-phoenix.com
Golden Phoenix Minerals, Inc. is a Nevada-based mining company committed to deliver value to its shareholders by acquiring, developing and mining superior precious and strategic metal deposits in North America using competitive business practices balanced by principles of ethical stewardship. Golden Phoenix owns the Mineral Ridge gold and silver property near Silver Peak, Nevada, the Northern Champion molybdenum mine in Ontario, Canada, and is manager/operator and majority owner of the Ashdown Project LLC gold and molybdenum property held jointly by Golden Phoenix Minerals, Inc. and Win-Eldrich Mines, Ltd. of Toronto, Canada through its US subsidiary, Win-Eldrich Gold, Inc.
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