Golden Phoenix Minerals, Inc. (OTC Bulletin Board: GPXM) has announced that it has entered into a Definitive Acquisition Agreement with Ra Resources Ltd. to acquire 100% of its outstanding securities.
"The acquisition of Ra Resources and its portfolio of gold and base metal properties within the Shining Tree District of Northeastern Ontario, will expand our acquisition plan into Canada," stated Tom Klein, CEO of Golden Phoenix. "Ra has just completed a geophysical program on its Churchill Gold property. A 5 hole, 2500 meter drill program is planned by the first quarter of 2011."
Insight Geophysical conducted the geophysical program. Their firm has been active in the area working with Northgate at their Young Davidson Mine and with Creso on their Shining Tree area properties. The Insight geophysical team is in the process of compiling their report.
"Our geological team has reviewed the preliminary findings and are extremely pleased with what we have seen," stated Jack Tindale, Exploration Manager for Ra Resources. "We expect to have the geophysical report to help identify high-priority drill targets in the coming weeks."
Ra Resources owns a 100% interest in four principal gold and base metal properties within the Shining Tree mining district of northeastern Ontario. The historic Shining Tree area is located along the same prolific Kirkland-Larder gold belt where Northgate is developing a three million ounce deposit and the Swazye area site of recently reported gold finds by Trelawney Mines. The Shining Tree district is currently undergoing a resurgence of exploration where five other companies have been preparing and engaging in drill programs. Ra acquired its holdings in 2006 and has invested over $600,000 CN in their development. The portfolio includes:
Churchill Township. A prospective gold property that contains three gold mineralized trends delineated in a 2009 43-101 geological study.
Browning Township. A prospective copper-zinc property consisting of over 100 contiguous claims spanning seven kilometers of airborne and ground conductors conducive to hosting VMS (volcanogenic massive sulphide) deposits.
Nursey Township and Asquith Township. These prospective properties feature copper-nickel and copper-zinc mineralization, respectively.
Under the terms of the Definitive Acquisition Agreement, upon the Closing (anticipated to occur no later than November 30, 2010), Golden Phoenix will issue to the shareholders of Ra such number of shares of Company common stock (the "GPXM Shares") as determined by an exchange ratio of 3.5 GPXM Shares for every 1 share of Ra common stock outstanding. As of the date of the Definitive Acquisition Agreement, there were 5,925,000 shares of Ra common stock issued and outstanding. In no event will the GPXM Shares issued in consideration for the Acquisition exceed 45,722,880. Currently, Ra owns or holds an exclusive option to acquire certain mining claims located in the Larder Lake Mining Division in Churchill Township, Ontario. Further disclosure regarding this transaction can be found in the Company's Form 8-K to be filed with the SEC as of the date of this press release.
Mr. Klein concluded: "The Shining Tree District has been experiencing continuous growth. We believe our entrance into this rapidly developing area of Canada will provide our shareholders with significant upside potential."
Source: Golden Phoenix Minerals, Inc.