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Stock News Bot Date: July 31, 2005 08:28:01 AM
MYNG News Research Golden Eagle International Inc, Stock Trading Message Board
Golden Eagle Encouraged by Historic High Copper Prices & Strong Gold Prices; Company Changing Address and Auditors
Golden Eagle International Inc. (OTCBB: MYNG) is encouraged by historic high copper prices and strong gold prices. Copper hit $1.683 per pound for August deliveries and gold closed at $427.40 for August deliveries.
"This is an incredibly dynamic time to be involved with developing a good copper and gold prospect like our Buen Futuro project in eastern Bolivia," stated Terry C. Turner, Golden Eagle's CEO. "While we cannot predict the future, we do see declining copper inventories all over the world and skyrocketing demand. We also see very favorable conditions for gold prices to remain stable or increase in the future."
According to Bloomberg.com, "Stockpiles (of copper) monitored by the London Metal Exchange fell 300 metric tons to 26,550 tons. Inventories have dropped 46 percent this year, the exchange said. Copper prices in New York, London and Shanghai rose to records this week as demand from China, the world's biggest user, showed little sign of slowing."
Golden Eagle continues to seek a minimum of $10 million in debt financing to move its 3,500 tpd Gold Bar mill and CIP gold plant located in Eureka, Nev., to its Buen Futuro project. The company intends to re-erect its mill and plant, and implement its mine plan, on its gold and copper prospect 168 miles north of Santa Cruz, Bolivia. The company has really only focused its final development efforts on its 75-acre "A Zone" within the Buen Futuro project, which has produced the majority of its drill data along the Ascension Gold-Copper Trend.
However, in August 2004, Golden Eagle received encouraging results of a remote sensing study indicating that the Ascension Gold-Copper Trend was much larger than initial results had shown. The study consisted of an interpretation of satellite images, aerial photographs, open-file airborne magnetic and radiometric data. Historic reconnaissance exploration data of the Trend was further re-examined and modern computer-based methods for an integrated data interpretation were applied. In addition, the results of geological mapping over 44 linear miles, magnetic ground surveys of over 9 miles and soil sampling over a distance of 18 miles, as well as electromagnetic (HLEM) data along two extensive test lines were analyzed. This study demonstrated that the Ascension Gold-Copper Trend, which appears to be a series of volcanogenic massive sulphide (VMS) deposits, is now likely to extend over at least 21 linear miles within Golden Eagle's Precambrian landholding of 136,500 acres.
The company also announced that it is moving its head offices as part of a campaign of cost-cutting measures implemented companywide. The new address will be: 9661 S. 700 E., Salt Lake City, UT 84070-3557. All telephone and fax numbers will remain the same: 801- 619-9320 for telephone and 801-619-1747 for fax. In addition, all e-mail addresses for the company will remain the same as well. Golden Eagle's Web site, www.geii.com, and telephone system may be down for a short period during the move but will be up and operating as soon as possible.
Golden Eagle also announced that it is changing auditors. The firm of Gordon, Hughes and Banks, LLP, was not able to continue serving the company based on periodic rotation requirements for the lead audit partner over Golden Eagle's account resulting from recent securities legislation. Golden Eagle had no disputes with its auditors and expressed gratitude for the years of excellent service provided by the firm.
The company's new auditors, Chisholm, Bierwolf and Nilson, LLC., have begun providing services as of this week.
Golden Eagle's Board Appoints H. Roy Shipes as Chairman
Company Makes Presentation to Financing Entities in Toronto
Golden Eagle International, Inc. (OTC BB: MYNG) announced today that its Board of Directors has elected H. Roy Shipes, 63, as Chairman of the Board.
Mr. Shipes has thirty-three years of mining experience in senior positions in base and precious metals production, engineering and project development management around the world. He also has extensive experience in acquisition, financing and development of projects in Bolivia, the United States, Canada, Ireland, Papua New Guinea, Australia, Honduras, Mexico, Venezuela and Peru. (Mr. Shipes' full resume is available in Golden Eagle's press release dated June 14, 2005 or in the Company's Form 8-K filed with the SEC on June 15, 2005.)
"I am honored to serve as Golden Eagle's Chairman during a period that holds so much potential for our Company," stated Mr. Shipes. "Bringing our Buen Futuro gold and copper project into production in eastern Bolivia is our number one priority, although to do so will cost at least $10 million. We do not currently have these funds available, but we are diligently pursuing various promising sources. I believe that if we are able to bring our Buen Futuro project into production, we will see an unprecedented growth in our company and a very exciting future for our shareholders. In addition, we are working toward resolving the issues at our Cangalli gold mine and continuing to look for other productive opportunities within Bolivia."
Golden Eagle's board also thanked Terry C. Turner for his service as Chairman. Mr. Turner will continue as Golden Eagle's President and CEO.
The Company also announced that Mr. Shipes and Mr. Turner traveled to Toronto, Ont., Canada at the end of last week for meetings with financial institutions focused on mine financing. Mr. Turner stated, "We believe that Mr. Shipes' involvement with Golden Eagle has opened up institutional financing possibilities for us in Toronto which we intend to pursue, as well as potential combinations of innovative financing concepts with some of our current sources. At the moment, however, we have no firm commitments for any additional financing from these institutional sources, but we are very encouraged."
Golden Eagle Raises Equity Funding
Company Director Demonstrates Faith in Bolivia
Golden Eagle International, Inc. (OTC BB: MYNG) announced today that it has raised $100,000 from four accredited investors in equity funding through the sale of 10 million shares of its common restricted stock.
The proceeds will be used to meet several critical operational needs in Bolivia and in the U.S. The Company intends to allocate some of the funds to support finalizing its environmental permit on its Buen Futuro project in eastern Bolivia's Precambrian Shield. Additionally, it will pay important payments under its acquisition contract for the Buen Futuro mining concession and other operational expenses.
"A company affiliated with our newest director, H. Roy Shipes, invested $30,000 in our restricted common stock, and three other current, accredited shareholders were inspired by his confidence in the company and put in the balance," stated Terry C. Turner, Golden Eagle's CEO. "These investments underscore Roy's confidence in Golden Eagle."
Golden Eagle also announced that Mr. Shipes, who is also the CEO of Atlas Precious Metals, Inc., on June 28 signed a joint-venture contract on Atlas' behalf with COMIBOL, Bolivia's national mining company, for the rehabilitation and operation of the Karachipampa lead and silver smelter in western Bolivia. In the contract, Atlas committed to invest $85 million for the addition of a zinc refinery with an annual capacity of 80,000 fine tonnes. It is planned that the Karachipampa smelter will employ 650 workers and inject new life into this economically depressed region of Bolivia. Golden Eagle was not involved in this transaction.
"Atlas maintains a strong faith in Bolivia as an excellent venue for mining and mineral processing operations," stated Mr. Shipes. "I joined Golden Eagle's board for the same reason -- to demonstrate that faith by making every effort to get the Buen Futuro project funded and to bring it on-line in the shortest time possible. Then the goal will be to grow the project into the kind of gold and copper operation that Golden Eagle's shareholders have a right to expect. With record copper prices, and gold holding at very high levels, we are more enthusiastic about Buen Futuro than ever."
The Company also announced that Max Staheli has resigned as a director. Mr. Staheli stated that with the appointment of H. Roy Shipes, "the board is in capable hands to lead this company forward and improve its fortunes." Mr. Staheli also indicated that he resigned because of the liability exposure of directors in public companies; because there is no current benefit to serving as a director; and due to his lack of influence on the management of the Company.
Golden Eagle Appoints Experienced Mining Professional to Board of Directors
Bolivia Returns to Tranquility After New President Sworn In
Golden Eagle International, Inc. (OTC BB: MYNG) announced today that its Board of Directors has appointed H. Roy Shipes, 63, as a member of the Board.
Mr. Shipes has thirty years of mining experience in senior positions in base and precious metals production, engineering and project development management around the world. He has extensive experience in acquisition and development of projects in Bolivia, the United States, Canada, Ireland, Papua New Guinea, Australia, Honduras, Mexico, Venezuela and Peru.
"Roy Shipes brings a wealth of operational and financing experience to our company at a critical time in the development of our Buen Futuro gold and copper project in Bolivia," stated Terry C. Turner, Golden Eagle CEO. "He is a mining professional of international stature and he has broad experience in South America and Bolivia in particular. He already possesses a thorough understanding of the Buen Futuro project, and has begun work for us immediately. We could not have asked for a more relevant set of skills and experience in a professional, and we are extremely lucky to have him on our Board."
Mr. Shipes remarked, "I am excited to work on Golden Eagle's Board and help bring into production the Buen Futuro gold and copper project. I have watched the development of the Buen Futuro project since its inception and have reviewed all of the supporting documentation on the ore deposit. I believe that current reserves are only the tip of the iceberg in the Ascension Gold-Copper Trend. I am very pleased to be involved with a project and company with such potential."
Mr. Shipes worked as a smelter engineer and operation foreman for Phelps Dodge Corporation from 1972 to 1975. He was vice president and general manager of operations for Southern Peru Copper Corporation, one of the largest copper producers in the world, between 1975 and 1985. He was the CEO and general manager of Ok Tedi Mining Ltd. in Papua New Guinea between 1985 and 1987, where he developed one of the largest copper mines in the world without outside contractors, saving shareholders over $500 million. Between 1987 to the present, Mr. Shipes founded and operated seven mining and mine services companies, including American Pacific Mining Company, AmPac Mining Southwest, Arimetco International, Suramco Metals, Transoceanic Trading Company, Western Gold Resources and Western Chemicals. All of these companies have been sold successfully to other mining interests. He also founded Western States Engineering to develop various mining projects and Western Capital Group to fund those projects. Currently, Mr. Shipes is CEO, president and chairman of the board of Atlas Precious Metals, Inc. and American International Trading Company, Inc. Both of those companies have extensive operations in Bolivia, including tin, lead, zinc, silver and smelter operations.
In addition, Atlas Precious Metals, Inc. and various employees of Western States Engineering are owners of Golden Eagle's common stock. Atlas holds 50 million common shares as a result of the Gold Bar mill and plant acquisition. Employees of Western States hold approximately 10 million shares, and are entitled by contract to an additional 10 million shares, for engineering services associated with the dismantling and re-erection of the Gold Bar mill and plant.
Golden Eagle notes that the country of Bolivia is returning to tranquility after the swearing in on Thursday, June 9, 2005, of its new president, Eduardo Rodriquez. President Rodriquez has called for general elections, perhaps as early as December of 2005.
"While we experienced some minor inconveniences during the recent social upheaval, things are very calm now," stated Mac Delozier, Golden Eagle's VP for Bolivian Administration. "The information circulating in Bolivia indicates that all of the political interests are now focused on working toward permanent solutions that will benefit the nation as a whole and foreign investment specifically."
Golden Eagle also announced that Ronald L Atwood, Ph.D., resigned June 8, 2005, as a Director and as the company's Chief Operating Officer due to the company's inability to meet some of its contractual commitments to him. The company thanks Dr. Atwood for his long and valuable service.
Golden Eagle Confirms Free and Clear Ownership of Gold Bar Mill and Plant
Company's $3.6 Million Purchase Price Returns to Net Equity
Golden Eagle International, Inc. (OTC BB: MYNG) confirmed today that it has amended its agreement with Atlas Precious Metals, Inc. ("Atlas") to acquire the Gold Bar mill and CIP plant located 25 miles northeast of Eureka, Nevada. The amendment strikes from the original Gold Bar purchase agreement a requirement that Golden Eagle move the mill and plant by June 24, 2005. As a result of this amendment, Golden Eagle's liabilities are reduced by $3.6 million, the amount reported in our financial statements included in our Form 10-KSB report for the year ended December 31, 2004, and in our Form 10-Q for the quarter ended March 31, 2005, listed therein as "redeemable common stock," representing the risk that Atlas would cancel the transaction and return our common stock to us if we failed to remove the mill timely. We will have an obligation to pay Atlas any fines or penalties that the Bureau of Land Management may assess if the mill is not removed when requested by the BLM, but there is no such request pending at the present time.
"This is a positive move that removes a risk that we might lose the Gold Bar mill and adds $3.6 million back to the net equity section on Golden Eagle's balance sheet," stated Tracy A. Madsen, Golden Eagle's CFO. "We believe that this news will be well-received by the financial community that is currently reviewing our Buen Futuro project financing alternatives. As a result of the removal of the risk that Atlas might cancel our acquisition of the Gold Bar mill, we believe that we are in a stronger position, and that this position will be reflected in our future financial statements."
Golden Eagle paid Atlas 20 million shares of its common stock, restricted pursuant to Rule 144, in exchange for the amendment.
At the same time, Golden Eagle agreed to pay certain consultants associated with Western States Engineering a total of 10,000,000 shares of common stock that are included in a Form S-8 registration statement to provide all necessary consulting services for the engineering of, and the physical supervision of, the dismantling, shipping and re-erection in Bolivia of the Gold Bar mill and plant. Golden Eagle will still be liable to the consulting firm for its direct and out-of-pocket costs in its work. The shares are payable quarterly commencing June 1, 2005, although Golden Eagle does not expect any substantial work to commence until Golden Eagle has sufficient financing available.
Eagle E-mail Alerts: If you are interested in receiving Eagle E-mail Alerts, please e-mail the company at: eaglealert@geii.com.
Golden Eagle International, Inc. is a gold and copper exploration and mining company located in Salt Lake City, Utah; and La Paz and Santa Cruz, Bolivia. The company is currently focusing its efforts on developing its mining rights on its Buen Futuro project within its 136,500 acres (213 square miles) in eastern Bolivia's Precambrian Shield. Buen Futuro is projected to produce 5,900 troy ounces of gold and 4.4 million pounds of copper per month once brought on-line. The company highly recommends that you review its disclosures, risk statements, previous press releases, annual reports, quarterly reports and current reports found at its website: www.geii.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS AND RISKS
Some of the statements in this press release are forward-looking statements and as such are based on an assumed set of economic conditions and courses of action. These include the ability of Golden Eagle to obtain the necessary financing on reasonable terms, estimates of mineral reserves and future production levels, expectations regarding mine production costs, expected trends in mineral prices, and statements that describe Golden Eagle's future plans, objectives or goals. There is a significant risk that actual results will vary, perhaps materially, from results projected depending on such factors as changes in general economic conditions and financial markets, changes in prices for gold and copper, technological and operational hazards in Golden Eagle's mining and mine development activities, uncertainties inherent in the calculation of mineral reserves, mineral resources and metal recoveries, the timing and availability of financing, governmental and other approvals and other risk factors listed from time-to-time in Golden Eagle's Form 10-K and its other reports filed with the Securities and Exchange Commission. Golden Eagle disclaims any responsibility to update forward-looking statements made herein.
