Ashdown Mine Issues Its First Cash Distribution of $1.25 Million to Golden Phoenix and Win-Eldrich From Q2 Molybdenum Sales
Wednesday July 11, 12:11 pm ET
SPARKS, Nev., July 11 /PRNewswire-FirstCall/ -- Golden Phoenix Minerals, Inc. (OTC Bulletin Board: GPXM - News), Manager and majority owner of the Ashdown Project LLC, a Nevada-based molybdenum mine, reports the distribution to Ashdown co-owners Golden Phoenix and Win-Eldrich Mines Ltd. of $1.25 million in available cash generated from second quarter molybdenum concentrate sales.
Of the total $1.25 million distribution, Golden Phoenix received $750,000 and Win-Eldrich received $500,000, in accordance with their current 60/40 ownership split. This represents the first distribution to be made to the owners since the Ashdown Project commenced sales of molybdenum concentrates in December of 2006 and does not reflect Golden Phoenix' claim to an additional 9.5% ownership interest currently being arbitrated.
The distribution was authorized at an Ashdown Management Committee meeting held on June 28, 2007. Under terms of the Operating Agreement governing the Ashdown Project LLC, a quarterly distribution of available cash may be made once current mining costs plus one month's advance operating expenses have been paid in advance or reserved. Full financial information on mine operations will not be available until Golden Phoenix completes its second quarter financial statements.
David A. Caldwell, CEO of Golden Phoenix, stated, "This distribution marks a milestone for which our employees and shareholders can be proud. After three years of pioneering effort to build the Ashdown mill and mine, we have achieved a positive cash flow from the newest primary moly mine to come on-line in a generation. While more work lies ahead to bring the mine into sustained profitability, it is time to reflect on what has been accomplished. Our team members were called upon to perform, and they delivered."
The Ashdown Project continues to ramp up its production capabilities. Work advances on preparation of the Ashdown 43-101 report, compilation and analysis of data generated from the recent Induced Polarization (IP) field study, and development of the underground workings. The miners continue to balance production of mill feed with general development, including the installation of a sand plant for backfilling, construction of a secondary escape raise and ventilation shaft, and ongoing drifting, stope work and timbering. This initial development work is scheduled to continue through the remainder of 2007.
The parties have also agreed to clarify statements made by Win-Eldrich in two press releases dated May 15 and June 12, 2007, in which Win-Eldrich described Golden Phoenix as "temporary manager" of Ashdown. To correct the record, Golden Phoenix is the Manager of the Ashdown Project and will remain its Manager until the Management Committee agrees, by majority vote, that the project is ready to advance to "stand-alone" status when the mine's operations will be managed by full time employees directly accountable to the Management Committee. As majority owner, Golden Phoenix appoints three of the five directors who serve on the Management Committee, one of which is an independent director with mining industry experience consented to by Win- Eldrich. After the "stand-alone" date, the owners of the Ashdown Project LLC will continue to manage the project through their representation on the Management Committee.
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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