"Under the original terms of the joint venture operating agreement in respect of the Mineral Ridge Project (the “Operating Agreement”), the Company had the right to increase its joint venture interest by 10%, to 80%, by providing 120% of the estimated costs of placing the Mineral Ridge Project into commercial production within 30 months of acquiring its interest in the Mineral Ridge Project, with commercial production being defined as operating the mine for a period of six consecutive months at 70% or more of the average life-of-mine production capacity, as set out in a feasibility study. Additionally, the Operating Agreement provided that if the Company increased its joint venture interest to 80%, it would have the right for a period of 24 months to buy-out Golden Phoenix’s remaining 20% joint venture interest at the net asset value of such interest, as determined by an independent valuator (the ”Buy-Out Right”).
In connection with the GP Debt Financing, the Operating Agreement has been amended to provide that the Company may now increase its joint venture interest to 80% by funding 100% of the capital expenditures required for the Mineral Ridge Project to produce or process a minimum of at least 3,500 ounces per month of gold for a period of four consecutive calendar months on or before September 10, 2012."
SO NOW WE ARE DOWN TO THIS:
The company has to achieve a minimum of at least 3,500 ounces per month of gold for a period of four consecutive calendar months on or before September 10, 2012 to increase its share of MR from 70 to 80%. With Jun 2012 being the first month of the last quarter that the production numbers HAVE to reach 3,500 ozs per month to meet the terms of the agreement.... and we won't find out that they achieved this until Sep 2012 at the earliest UNLESS they achive the production numbers BEFORE then.
They were at under 1/3 of the required capacity for the third quarter with numbers at 2,399 ounces of gold and 1,999 ounces AND THAT IS BASED ON 3 MOS not FOUR. ALSO there is already snow on the valley floors here in UTAH.
IN ADDITION:
"...if the Company increased its joint venture interest to 80%, it would have the right for a period of 24 months to buy-out Golden Phoenix’s remaining 20% joint venture interest at the net asset value..."
Which puts the buy out date at NLT Sept 2014 and no sooner than early 2014 "
As of September 30, 2011, 61 tons of loaded carbon, containing an estimated 5,933 ounces of gold and 3,172 ounces of silver has been shipped to their facility. During the third quarter, the Company’s metal sales from its production of recovered gold and silver totalled 2,399 ounces of gold and 1,999 ounces
1. PR 01 Dec 04
GOLDEN PHOENIX MINERALS REVIEWS GOLD PRODUCTION AND NEW STRATEGIC DIRECTION AT ITS MINERAL RIDGE GOLD MINE
"...announced gold production through the third quarter of 2004, and operational changes to improve future gold production at its Mineral Ridge gold mine in Esmeralda County, Nevada. In July 2003 the Company initiated gold production with the re-start of the Mineral Ridge leaching operations, which had been mothballed four years earlier by the previous operator. Annual gold production through September 2004 was 2,524 ounces: 456 ounces in the first quarter; 1,165 ounces in the second quarter, and 903 ounces in the third quarter. Total silver production through September was 2,185 ounces."
SCORPIOS'S QUARTERLY PRODUCTION NUMBERS NOW EXCEED GPXM'S NUMBERS FOR IT'S LAST THREE QUARTERS OF PRODUCTION BEFORE IT SHUT DOWN MR.
2. While Scorpio's numbers are BETTER than GPXM's they basically have 7 mos to get the pad to "mature" enough to begin to achieve a 3,500 ozs of gold a month average. I'm assuming the numbers will be averaged over those 4 months... so They can achieve those numbers if the first month of the 4 month period is lower as long as THEY SAY.... the numbers track positively.
Shipment of the gold bearing sludge previously recovered from the barren pond is complete with exchanges of assays and final payment for those materials received in September. The Company recovered 235 ounces of gold and 193 ounces of silver from that material, with net proceeds totaling $298,758.
