GOLDEN PHOENIX MINERALS (GPXM)

[Captain Black Bob Blanco]

Golden Phoenix Announces the Sale of Its 10% Interest in the Santa Rosa, Panama Gold Project
Date : 02/18/2014 @ 5:30PM


Golden Phoenix Minerals, Inc. (OTC Bulletin Board: GPXM) ("Golden Phoenix" or the "Company") is pleased to announce it has entered into a definitive agreement to sell its 10% ownership interest in the Santa Rosa, Panama gold project for US$2.6 million.

In September 2011, the Company and its partner formed a Panamanian corporation, subsequently renamed Vera Gold Corporation ("Vera Gold"), for the purpose of developing and operating mining concessions pertaining to the Santa Rosa Gold Mine located in the Province of Veraguas, Panama. Pursuant to an agreement entered into in July 2012, the Company and its partner agreed to terminate the original agreement to develop the Santa Rosa Gold Mine, and the Company retained a 10% interest in Vera Gold.

On February 12, 2014, the Company completed negotiations for a Share Purchase Agreement, whereby it sold its 10% ownership in Vera Gold to certain foreign investors for US$2.6 million, with $260,000 payable to the Company upon full execution of the agreement with the balance of $2,340,000 payable to the Company on or before April 14, 2014. The Company received full payment of the $260,000 on February 18, 2014. Final closing of the sale and the transfer of the 10% ownership in Vera Gold are expressly contingent upon the Company receiving all proceeds.

"The sale of our interest in the Santa Rosa Gold Mine will provide much needed funding to help capitalize the Company, extinguish certain debt and provide some working capital to commence planned exploration activities on our joint-ventured Nevada Properties," said Donald Gunn, President of the Company.