You betray a lack of experience with junior mining companies, where this type of financing is not at all unusual. Banks will not loan money to a venture this risky, so some of the principals of the company agreed to advance some of their own money to allow the company to process the bulk sample, i.e. continue to operate. Since this is extremely high risk, it is normal for them to get their money back first -- think of them like the preferred shares on a blue chip, which in the case of bankruptcy get paid off before regular shareholders get a penny.
You also need to know the Golden Phoenix back story -- that current management is composed largely of former shareholders who took it upon themselves to put in their own time and money to rescue GPXM from the pickle it had been left in by incompetent former management. Some of these guys deferred their pay for long periods while righting the ship.
Far more concerning to me is the Fusion financing, which IMO is responsible for the current share price malaise. Fusion are predators who drive many companies into bankruptcy, so the sooner cash flow from production replaces their money the better. I am confident that this will occur before any permanent damage can be done.
This is all laid out quite nicely on the website and in filings. Take a few hours to really research the company in depth.
The fact remains that any money you invest in GPXM should be speculation money you can afford to lose, in return for the possibility of multi-bagger returns. But IMO the risk involved in being a GPXM investor has substantially diminished now that the company is in production, and once they are able to get the operation running at capacity and Fusion is no longer in the picture, shareholders should see good returns.
LC
