Jun 22, 2009
Scorpio Gold Corporation Completes Initial Due Diligence on Mineral Ridge Property
Scorpio Gold Corporation (the "Company") is pleased to announce that it has completed its initial due diligence on the Mineral Ridge property and under the terms of the Standstill agreement with Golden Phoenix Minerals, has advised Golden Phoenix that it wishes to proceed with the transaction and commence negotiating a definitive joint venture agreement. As announced on May 28, 2009 Golden Phoenix Minerals has entered into a Standstill agreement with the Company for the purpose of completing due diligence and negotiating final terms prior to entering into a definitive joint venture agreement between the parties and potentially restarting gold and silver production at the Mineral Ridge mine, located in Esmeralda County, Nevada.
In addition to the US$50,000 payment made at execution of the Standstill agreement, the Company will now advance US$100,000 per month to Golden Phoenix while the definitive agreement is being completed and the transaction closed. All of such payments will be non-refundable but credited towards the Company's required closing payments.
The Company's due diligence review confirmed the technical soundness of the Mineral Ridge project and the Company intends to work with Golden Phoenix to close the transaction as soon as possible and move the project forward.
ON BEHALF OF THE BOARD
SCORPIO GOLD CORPORATION
Peter J. Hawley,
Chief Executive Officer and Director
Phone: (819) 825-7618
Fax: (819) 825-0977
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The Company relies on litigation protection for "forward-looking" statements. This news release contains forward-looking statements that are based on the Company's current expectations and estimates, including statements as to future sales. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur, and include, without limitation, statements regarding the Company's plans with respect to the exploration and development of its projects. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements, including those risk factors outlined in the Company's Management Discussion and Analysis for the year ended December 31, 2010 as filed on Sedar. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.