[posting]22227755[/posting]
GOLDEN PHOENIX REMOVES $2.4 MILLION IN DEBT FROM
BALANCE SHEET; SELLS SIX CLAIMS AT CONTACT MINE
SPARKS, NV, July 7, 2006 - Golden Phoenix Minerals, Inc. (OTC Bulletin
Board: GPXM - News) is pleased to announce it has reached an accord
with former joint venture partner, International Enexco Ltd., a Vancouver,
British Columbia corporation (CA: IEC), resulting in the removal of more
than $2.4 million in Company liabilities from its balance sheet relating to
the Contact Property located in Elko County, Nevada.
These liabilities represented accruals under the Joint Venture Agreement
between Golden Phoenix and International Enexco dated January 28,
1998. Both parties acknowledged that the Agreement was terminated
pursuant to clauses limiting liquidated damages to only those amounts
paid to International Enexco while the Agreement was in effect.
Consequently, all accrued unpaid liabilities were extinguished upon
termination of the Agreement and will be reversed, resulting in a gain on
extinguishment of debt of $2,420,643.
In compliance with its original Termination Notice effective January 22,
2005, Golden Phoenix had already executed a Quitclaim Deed conveying
all mineral rights back to International Enexco, with no encumbrances
remaining.
In a separate transaction, International Enexco completed the purchase of
Golden Phoenix’s remaining claims at the Contact Property. The parties
agreed to exchange 100,000 free trading shares of International Enexco
stock for the assignment of title to six unpatented mineral claims, known
as the “Red Metal” claims, staked by Golden Phoenix in 2003. The sale
was completed on June 27, 2006. IEC stock closed trading yesterday at
$1.32 per share.
David A. Caldwell, President of Golden Phoenix, commented, “Resolution
with International Enexco brings to a close one of the last outstanding
items relating to our tenure at the Contact Property. It significantly
improves our Balance Sheet at the same time that it provides ongoing
upside potential relating to the Contact Property through the newly
In diesem Sinne ein wunderschönes und reiches Wochenende, Gruß JoJo
http://www.golden-phoenix.com/news_releases.htm