The company plans to acquire its initial 60% interest in Santa Rosa by acquiring 60% of the share capital of a recently created JV company under the name Golden Phoenix Panama.
The JV company was formed with the specific purpose of holding, operating, running and mining the exploration, extraction, transport and benefit concessions that encompass Mina Santa Rosa.
Silver Global will start the process of transferring ownership of the concessions as well as all rights, permits, licenses, environmental impact study, insurance, bonds, surveys, documents, among other assets belonging to Silver Global in connection with Mina Santa Rosa to the JV company.
The JV company will operate according to the terms of a JV operating agreement that Golden Phoenix and Silver Global have agreed to sign on or before 15 October 2011, at which time the definitive agreement shall be merged with and incorporated into the JV agreement.
The Santa Rosa mine produced over 100,000 ounces of gold from 1996 to 1998 and was closed down due in part to low gold prices.
