Golden Phoenix Closes the Mineral Ridge Joint Venture Sale With Scorpio Gold

Friday, Mar 12, 2010

Golden Phoenix Minerals, Inc. is pleased to announce that it has completed the sale of a 70-percent joint venture interest in its Mineral Ridge gold property, together with related assets, to Scorpio Gold Corporation.

Golden Phoenix and Scorpio Gold's U.S. subsidiary have created Mineral Ridge Gold LLC, a joint venture formed to own, explore, develop and expand the historic Mineral Ridge gold property located in Esmeralda County, Nevada.  Initial ownership of the joint venture is 30-percent Golden Phoenix and 70-percent Scorpio Gold U.S.

At the closing, Golden Phoenix received US $3.75-million in cash from Scorpio Gold, net of advances made to date, plus an aggregate of 7,824,750 common shares of Scorpio Gold capital stock.

As a further condition of the sale, Scorpio Gold has also agreed to carry all finance costs necessary to bring the property into commercial production and, provided it does so within 30 months, will then have the right to increase its joint venture interest by 10-percent to a total of 80-percent.

In the event Scorpio Gold qualifies for 80% ownership, it will also have the option to purchase Golden Phoenix's remaining 20-percent interest for a period of 24 months following the commencement of commercial production.

For more information on Golden Phoenix Minerals, please visit their corporate website at http://www.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 is co-owner of the Mineral Ridge gold and silver property near Silver Peak, Nevada and owns the Northern Champion molybdenum mine in Ontario, Canada.

Source: PR Newswire