Entry into a Material Definitive Agreement, Other Events, Financ
Item 1.01 Entry into a Material Definitive Agreement. On August 29, 2006, Golden Phoenix Minerals, Inc. (the "Company") entered into a Letter Agreement with Win-Eldrich Gold, Inc. ("Win-Eldrich"), which defines the steps to be taken over the next five weeks in order to complete the transfer project assets to a limited liability company (the "LLC") to be formed by the Company and Win-Eldrich, including, but not limited to, the underlying mineral rights, the fully-operative mill facility and preexisting contracts. The LLC will manage and operate the mine and mill on behalf of the members.
Pursuant to the terms of the Letter Agreement, Win-Eldrich and the Company agreed that Win-Eldrich will pay to the Company, on or before August 31, 2006 the amount of $550,000, which approximates Win-Eldrich's forty percent (40%) share of expenditures for the Ashdown Project (both incurred and anticipated) from July 1, 2006 through September 30, 2006.
The parties have further agreed to use their best efforts to resolve any issues as to the amount of expenditures incurred by the Company not later than September 30, 2006. If as a result of such review it is determined that forty percent (40%) of the actual expenditures incurred by the Company in excess of $5,000,000 is greater or less than $550,000 (the "Win-Eldrich Share"), then (i) the Company will promptly reimburse Win-Eldrich for an amount equal to the difference between $550,000 and the Win-Eldrich Share, if the Win-Eldrich Share is less than $550,000, or (ii) Win-Eldrich will promptly pay to the Company an amount equal to the difference between $550,000 and the Win-Eldrich Share, if the Win-Eldrich Share is greater than $550,000.
The parties have also agreed to use their best efforts to agree upon the amount of net revenues received by Win-Eldrich from the processing of stockpiled ore transferred from the Ashdown Mine to Phillipsburg, Montana, not later than September 30, 2006. Win-Eldrich has agreed to pay the Company an amount equal to sixty percent (60%) of those net revenues at the same time as the payment is made relating to the Win-Eldrich Share, as set forth above.
The Company and Win-Eldrich have further agreed that a five percent (5%) management or overhead fee is appropriate for use in accounting for expenditures related to the calculation of the Win-Eldridge Share and the net revenues associated with the processing of ore from stockpiles transferred from the Ashdown Mine to Phillipsburg, Montana.
Finally, the parties have agreed to use good faith efforts to have the Contribution Agreements and the Operating Agreement related to the LLC fully-negotiated, executed and delivered and the LLC organized as soon as is reasonably practicable, but not later than September 30, 2006.
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"During this time period there are no company events which warrant such a steep, sudden climb in share price."
Before my words can be twisted, there are company events during the third week of August, but these events are not of the type which would cause this much of a rise.
The news during that time period, might cause a nickel a share rise caused by naive traders, but not a full ten cents a share rise, which is piggy-backed on the first initial rise.
I could propose a possible explanation but evidence is not available nor all that well supported.
A possible but more of a guess,
Naive traders like the news of August third week, creating a bit of an upward run. This is ok, this news is positive. Some traders see this then jump in at boards, pump, causing a bit more excitement amongst the naive. This leads to the secondary upward run shown in my chart.
A profit taking fall is very clear in my chart. This would be the pumpers jumping out for profit.
This ten cent rise in prices, in two stages, does not fit the pattern of a pump and dump. Adding to this, a pump and dump will display a gradual climb in prices, not a very steep radical jump. A true pump and dump takes time.
A pump can happen in one or two days, which is what we see in charts. This is actually fairly much typical behavior, not all that negative.
Prices "should" fall tomorrow and on into the week. Of course, this is not written in stone. End result might be a little bit higher bottom support.
However, momentum behind a fall like this "should" drop prices below bottom support, a buy chance, followed by prices moving up very slightly, then become level for a time.
Buying just below bottom support affords you a better chance of not losing money, but is not a guarantee of making profits. This is simply a bit better of a buy position.
For a upward trend to develop, this company must provide news of moving into full scale operations which suggests future revenues.
Again, I like this company but GPXM is in the middle of a transition period from the Mineral Ridge operation to the Ashdown moly operations. No doubt, there is a reason for this switch, most likely a good business decision.
This switch appears to be presenting some good buy prices for the long term. I truly think this company will do well in the future.
Purl Gurl
Purl,
What do you make of today's rise in PPS and the latest news and 8k filing?
I will do my own DD too, but what would be the purpose of creating a LLC to run Ashdown?
TIA for your insight.
NR.
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Limited Liability: Owners of a LLC have the liability protection of a corporation. A LLC exists as a separate entity much like a corporation. Members cannot be held personally liable for debts unless they have signed a personal guarantee.
Flexible Profit Distribution: Limited liability companies can select varying forms of distribution of profits. Unlike a common partnership where the split is 50-50, LLC have much more flexibility.
No Minutes: Corporations are required to keep formal minutes, have meetings, and record resolutions. The LLC business structure requires no corporate minutes or resolutions and is easier to operate.
Flow Through Taxation: All your business losses, profits, and expenses flow through the company to the individual members. You avoid the double taxation of paying corporate tax and individual tax. Generally, this will be a tax advantage, but circumstances can favor a corporate tax structure.
Disadvantages of Limited Liability Company
Limited Life: Corporations can live forever, whereas a LLC is dissolved when a member dies or undergoes bankruptcy.
Going Public: Business owners with plans to take their company public, or issuing employee shares in the future, may be best served by choosing a corporate business structure.
Added Complexity: Running a sole-proprietorship or partnership will have less paperwork and complexity. A LLC may federally be classified as a sole-proprietorship, partnership, or corporation for tax purposes. Classification can be selected or a default may apply.
quote:I recommend reading the entries that seemed relevant to GPXM titled:
Who should form an LLC?
What are the differences between a limited liability company and a partnership?
Can I convert my existing business to an LLC?
quote:Anyone care to speculate or comment as to why GPXM would make this move? Should it be seen as good or bad for GPXM's PPS short and/or long term?
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posted
Golden Phoenix and Win-Eldrich Complete Formation of Ashdown Operating Company
Monday October 2, 1:06 pm ET
SPARKS, Nev. and TORONTO, Oct. 2 /PRNewswire-FirstCall/ -- Golden Phoenix Minerals, Inc. (OTC Bulletin Board: GPXM - News) and Win-Eldrich Mines Limited, (TSXV: WEX) are pleased to announce the completion and signing of agreements that form the operating company, Ashdown Project LLC, that owns and will operate their Ashdown molybdenum mining project in Nevada.
With the formation of Ashdown Project LLC, responsibility for the continued development and supervision of the Ashdown mine property and its mill facility passes to a five-member board representing Golden Phoenix's 60% interest and Win-Eldrich's 40% interest. Continuity of day-to-day operations will be maintained during a transition period by Golden Phoenix under contract to the LLC, with Vice President Operations Don Prahl and Mine Manager Earl Harrison continuing to lead on-site operation of the mine and mill.
Construction of the Ashdown mill, located two miles from the mine, was recently completed. It is a 100-ton per day flotation facility, designed to process molybdenite ore and produce a high-quality commercial concentrate. The mill has undergone successful systems trials and metallurgical tests in the past four weeks and is ready to receive mill feed from the mine.
Work on the mine and mill has advanced under a 1000-ton bulk sample permit, and the full-scale Plan Of Operations is currently in final review at the Bureau of Land Management.
The price of molybdenum oxide, which is the internationally accepted form of the molybdenum disulfide concentrate to be produced at Ashdown, has traded in a $20.00-to-$29.00 range since January 1, 2006, for an average price of $24.45.
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 owns the Mineral Ridge gold and silver property near Silver Peak, Nevada, the Northern Champion molybdenum mine in Ontario, Canada, and is manager/operator and 60% owner and partner of the Ashdown gold and molybdenum property in Humboldt County, Nevada.
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posted
GOLDEN PHOENIX MINERALS INC files Prospectus Pursuant to Rule 424
Supplement No. 3 To Prospectus Dated March 6, 2006
This Prospectus Supplement supplements our Prospectus dated March 6, 2006, Prospectus Supplement No. 1 dated August 4, 2006 and filed with the Securities and Exchange Commission on August 7, 2006, Prospectus Supplement No. 2 dated September 6, 2006 and filed with the Securities and Exchange Commission on September 11, 2006 (collectively, the “Prospectus”) relating to the sale of up to 22,191,919 shares of the common stock of Golden Phoenix Minerals, Inc. by Fusion Capital Fund II, LLC (“Fusion Capital”). This Prospectus Supplement No. 3 includes (i) attached Current Report on Form 8-K as filed with the Securities and Exchange Commission on September 29, 2006; and (ii) the attached Current Report on Form 8-K as filed with the Securities and Exchange Commission on October 3, 2006. We encourage you to read this Supplement carefully with the Prospectus.
Our common stock is quoted on the Nasdaq Over-the-Counter Bulletin Board under the symbol “GPXM.OB”. On October 4, 2006, the last reported sale price for our common stock as reported on the Nasdaq Over-the-Counter Bulletin Board was $0.3585 per share.
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Directors David A Caldwell Director Ronald L. Parratt Director Jeffrey Tissier Director
Interim Governing Board Kenneth S. Ripley Chairman Ronald L. Parratt Member David A. Caldwell Member
Corporate Officers Kenneth S. Ripley CEO David Caldwell President, COO Robert Martin Secretary, Executive VP
Share Capital Authorized 200,000,000 Issued 147,925,957 Warrants 2,434,265 Options 6,115,715
Corporate Offices Address 1675 East Prater Way Suite 102 Sparks, Nevada 89434 Telephone 775-853-4919 Facsimile 775-853-5010 Email investor*golden-phoenix.com Website www.golden-phoenix.com
Corporate Counsel Scott Bartel & Amy Hanks Bullivant Houser Bailey PC 1415 L Street Suite 1000 Sacramento, California 95814
Transfer Agent Amanda W. Cardinalli, President Nevada Agency and Trust Company Bank of America Plaza 50 West Liberty Street Suite 880 Reno, Nevada 89501 Telephone 775-322-0626 Facsimile 775-322-5623 Email amanda*natco.org
Auditor Charles Roe HJ & Associates, LLC 50 South Main Street Suite 1450 Salt Lake City, Utah 84144
PR/IR Consultant Paul Knopick E and E Communications 25052 Salford Street Laguna Hills, CA 92653 Telephone 949-707-5365 Facsimile 949-707-5375 Email pknopick*eandecommunications.com
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Ashdown mill receives Occupancy Permit A tour was conducted for mine analyst Mike Kachanovsky (far right). From left, VP Ops Don Prahl, Mill Foreman Jason Layton, Win-Eldrich President, Perry Muller.
The Humboldt County Building Department has issued an Occupancy Permit for the Ashdown Mill, which now allows the mill to commence on-going operations as soon as high-grade material is supplied from the South Zone of the mine. A bond for the mine, in the amount of $216,000, has been approved by BLM, and now moves through the adjudication process toward final posting. The FONSI (Finding of No Significant Impact) is being prepared for publication and managment is standing by for formal notification.
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All three were for acquiring shares, for a total of 400,000 shares with an average price of 0.36/share.
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- First U.S. Moly Mine On Line in Current Bull Market -
SPARKS, Nev., Nov. 1 /PRNewswire-FirstCall/ -- Golden Phoenix Minerals, Inc. (OTC Bulletin Board: GPXM - News) today announced that the Bureau of Land Management (BLM) has approved the Plan of Operations for the Ashdown molybdenum and gold mine located in Humboldt County, Nevada. A Finding of No Significant Impact (FONSI) and Decision Record have been issued and signed by the BLM Winnemucca Field Manager.
The mine is operated by the Ashdown Project LLC, a cooperative venture between Golden Phoenix and Win-Eldrich Mines, Ltd. of Toronto, Canada. Ashdown is being readied to produce molybdenite concentrates for sale through a purchase contract with a London-based brokerage.
Approval of the Plan of Operations makes Ashdown the first new U.S. molybdenum mine to come on line during the current commodity bull market. The mine's reclamation plan has also been approved by BLM and a $216,518 bond, posted on October 19, 2006, is awaiting processing for final acceptance. Prior to bond clearance, mining and milling activities are scaling up under a pre-existing bulk sample permit.
Robert Martin, Executive Vice President of Golden Phoenix, commented, "As moly prices continue to consolidate at historically high levels, our mining crews are starting to deliver high-grade material to the mill. Working with Win-Eldrich through our LLC Management Committee, we are preparing to ramp up the production and sale of moly concentrates as rapidly as possible."
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 owns the Mineral Ridge gold and silver property near Silver Peak, Nevada, the Northern Champion molybdenum mine in Ontario, Canada, and is manager/operator and 60% owner and partner of the Ashdown gold and molybdenum property in Humboldt County, Nevada.
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posted
This is huge news for GPXM. With Ashdown set for full production, GPXM should start to see some revenues coming in. I expect GXPM will do well over the next few weeks.
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posted
My hope is that given the recent strength in gold, and the resulting revenues from the Ashdown start-up, GPXM will return the focus to it's gold mine at Mineral Ridge. It will also be interesting to see if they move forward with their recently acquired Northern Champion molybdenum property.
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----- Addressing the new appointments, David Caldwell said, "When Ken Ripley was asked to lead our recovery back in January of 2005, the Board of Directors had no idea how fully he would commit himself personally, professionally and financially. As a result of his extraordinary efforts, Golden Phoenix is now a leaner, smarter, stronger company, with declining debt and rising cash flow. We are deeply grateful to Ken for delivering a working mine to a revitalized enterprise; it is our job to build on that foundation."
Don Prahl added, "Insofar as my career has focused on optimizing profitability at large-scale gold, moly and copper mines, I intend to build Golden Phoenix and its resource portfolio into something we can all be proud of. With Ashdown now projected to cash flow and self-fund, my first task is to see that it has the people and equipment needed to reach full-scale production as soon as practical. I have also started work on the feasibility studies needed to bring our Mineral Ridge gold and silver property back on line. I am totally committed to establishing exceptional mining opportunities for the benefit of every one of our shareholders."
Robert Martin concluded, "Dave, Don and I have forged a bond in the course of building a new future for Golden Phoenix. My business drive coupled with Don's deep industry knowledge fit well with Dave's exploration skills and public company experience. Add in Dennis Gauger's corporate governance and compliance background, and I believe we have a balanced team that hears our stockholders loud and clear: Grow share value, ramp-up moly sales, stoke-up reserve capital, reopen Mineral Ridge, and expand reserves through exploration at Ashdown, Mineral Ridge and Northern Champion."
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posted
Nice gap up this morning on strong volume. Should test the 200MA of 0.36/shr today IMO.
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posted
Strong volume again this morning, B 0.36 x A 0.363....
If we can break through and hold above the 200MA of 0.36, we should move up to around 0.38-0.39/shr before hitting some resistance.
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posted
GPXM moving up again. It has already broken past the resistance at 0.37... Currently B 0.380 x A 0.383, with over 330,000 in volume.
They recently filed a notification of late filing for the 10K but IMO this is nothing to worry about. When it is filed, within 15 business days of 4/2, it should reflect GPXM recent MolyB sales, which as of March should total close to 1$mil USD.
Keep this one on your watch list IMO, but always do your own DD.
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posted
This one is getting more interesting. Volume has also increased during the last 30 days what may signal we are on the way probably up. A small consolidation is expected now. Moly may have a good year in 2007. FTS
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The 10-K is a massive document and involves the efforts of a team of in-house accountants, outside accountants, independent auditors and corporate attorneys. It is very common for last minute adjustments and corrections to be made as the document is finalized. The SEC allows for this activity by providing a 15 day extension period in order to wrap up these types of details. There is nothing unusual about this extension as the Company continues its preparation of the documents for submittal.
Best regards,
Rob Martin President GPXM
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quote:Originally posted by NaturalResources: .....
They recently filed a notification of late filing for the 10K but IMO this is nothing to worry about. When it is filed, within 15 business days of 4/2, it should reflect GPXM recent MolyB sales, which as of March should total close to 1$mil USD.
.....
I just want to make a correction here, I believe all the recent MolyB sales were after the first of the year so the 10KSB annual report for 2006, when filed, will not reflect these sales.
However, they should show up on the Q1 10QSB quarterly report. Last year's Q1 was filed May 19th, ~1 month after the 10K was filed. Sorry for the mess up.
NR.
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posted
GPXM still moving strong... Looks like it might test the 0.40/shr resistance level today.
B 0.390 x A 0.393 with close to 500k in volume.
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Golden Phoenix Minerals, Inc. manager and majority owner of the Ashdown Project LLC, a Nevada-based molybdenum mine, announces the start of an Induced Polarization (IP) survey by Gradient Geophysics, a geotechnical exploration firm. The IP survey, which is expected to take approximately four weeks, is designed to identify potential molybdenum targets within sections of Ashdown's 2,000-acre claim group.
David A. Caldwell, CEO and Chief Geoscientist for Golden Phoenix, commented on the survey, "The physical properties of Ashdown's molybdenite deposits appear well suited to this type of exploration. IP is capable of creating images of the subsurface over large areas quickly, accurately and inexpensively, helping us to direct follow-up surface drilling and underground exploration."
Induced polarization employs transmitters and electrodes to send and receive an electric current through the ground, measuring its conductivity and capacitance. The work is performed at precise intervals along a predetermined grid, and the resulting imagery is then assembled into a three-dimensional model pinpointing possible mineral bodies to a potential depth of hundreds of feet.
The survey will center on current underground mine operations and cover a grid extending 1600 feet along the Sylvia molybdenite vein. It will model the existing Sylvia shoot to gain a "fingerprint" that can be used to identify potential analog targets. A three-dimensional image will be generated to show the location and size of potential moly mineralization and help guide present mining operations and future drill and drift exploration.
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posted
Two year chart shows support at 0.27/shr, 0.32/shr and 0.38/shr. Resistance at 0.47/shr, 0.50/shr, 0.52/shr with a 52wk high of 0.56/shr.
Recent insider transactions include buys by new employees at 0.32/shr and 0.38/shr, and sells at 0.40/shr and 0.44/shr by the the former-CEO.
While GPXM has made huge gains since Jan of 06, I still think this stock will move higher. It reached it's 52wk high in May of 06 following news of the company moving to start up production at Ashdown.
Since that time, MolyB production has begun and the company is currently selling concentrate, while also taking steps to increase production. Please see the company website for more details.
Further, the company is in the process of updating reserves at Ashdown. As stated by David Caldwell "...our present mining footprint occupies less than one-third of the known fault zone and represents a small fraction of the total claim area awaiting systematic exploration..." (See recent PR from May 1).
The company is also working on a feasibility study to bring it's Mineral Ridge gold mine back into production. In addition, they plan to do exploration work on their newly acquired MolyB Nothern Champion property this summer.
If the company keeps it's word, like it has by bring Ashdown into production, look for this stock to move higher as the news about Mineral Ridge and Northern Champion comes out. I would also expect a jump in price when the updated NI 43-101 technical report for Ashdown is released.
IMO, this company is an exception to most penny plays, and I view it as a long term hold. Of course, this is all IMO, and as always, before you buy anything.... DO YOUR OWN DD.
GLTA, NR.
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posted
Nice upward movement today, with an intra-day high of 0.52/shr. Volume is strong with ~3.9 million shares traded so far, the largest one day volume for the last 2 years.
Six month chart shows clear uptrend and increasing volume with the "golden cross" approaching. IMO, GPXM still looks good both long and mid-term, though short term, RSI indicates the stock is overbought and is probably due for a small correction. I plan on picking up a few more shares if it drops to the 0.38/shr range.
GLTA and DYODD, NR.
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May 8th sales include: 25,000 sold at 0.465/shr and 25,000 at 0.475/shr.
May 9th sales include: 25,000 sold at 0.495/shr and 25,000 at 0.505/shr.
While I am a bit unsettled to see Mr. Rippley selling shares, he still owns 2,740,545 shares of GPXM and the last two Form 4s filed only represent ~3% of his total holdings. Also, while he does know more about GPXM than the average investor, being the Ex-CEO, he is "out of the loop" as of 01/31/07, and I haven't seen any sales by those who are still employed by GPXM.
The form states that Sprott Molybdenum Participation Corporation now owns 15,000,000 shares, or 8.2% of GPXM's total outstanding shares, to be used for it's Molybdenum fund. ( http://www.sprottmoly.com/home.htm ).
Other participants in this fund include Blue Pearl Mining (TSX: BLE; Pinks: BLEFF), which is the world’s largest publicly traded primary molybdenum company and Roca Mines (TSX: ROK; Pinks: ROCAF), an up and coming Molybdenum miner that expects to begin production at it's MAX Molybdenum Deposit in Revelstoke, British Columbia, sometime this year.
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posted
Eric Sprott BNN transcript from May 7th, 2007
Transcript from Eric Sprott interview on his Moly Fund and the Economy
Why is there so much interest in Molybdenum right now?
Moly in not unlike other metals that we fully understand and I speak to nickel and copper and zinc and lead where we can all see the inventories declining and we see that there is more demand versus supply that's why the price goes up. In the case of moly, you don’t see the inventories but I would venture to say that the factors affecting all base metals also is affecting molybdenum and that supply has exceeded demand for probably the last 3-4 years and now we find ourselves in a shortage.
You’re going to invest in both companies that are exposed to moly and the commodity itself, why this approach?
As you are aware there is a Sprott uranium participation corporation which only invested in uranium. We were a factor involved in starting that and I think one of the mistakes we made was not investing in the common equities because common equities obviously outperform the metal and that’s why we chosen to do both the equities and the metal in the new moly fund because I think the equities, which has been demonstrated in the last month or so, have done incredibly well over the very short period here.
Why have you not included Adanac Molybdenum in the fund?
We didn’t buy the recent Adanac purchase probably because at the time we thought there might have been better ore bodies around that we should invest in. As you probably know, our major investment is in Blue Pearl in terms of dollars we also are very large owners of Moly Mines, which is based in Australia and Idaho General that is in the United States and Adanac and those 2 companies are probably the most likely to start up a new mine in the near term within the next 2-3 years. But we just thought that the other ones were a little more appropriate to our investment styles at the present time, we may come back to Adanac, we have not invested all the funds that we raised – we probably only invested about 75% of the 200 roughly million that we raised so we may go there yet.
So it sounds like your criteria are companies who are producing or are very close to producing?
That’s where are primary investments are, you want to be somewhere either with a producer which is our largest holding or a company that is close to production because you want to be able to net present value on it and just see what you’re buying in the market place and that’s kinda where we focus with the bulk of our funds.
Do you think private equity is eventually going to target some of these moly companies and take them out?
I think it’s obvious from all the resource plays that are going on here and the takeovers that perhaps the market has not properly valued resource companies that would be our view. Between the mining companies and private equity anything could happen here.
(replace '********' with 'b logspot' minus the space)
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