January 6, 2010 (FinancialWire) — Golden Phoenix Minerals, Inc. (OTCBB: GPXM) said it has signed a definitive joint venture agreement to sell a 70% interest in its Mineral Ridge Gold mine located in Esmeralda County, Nevada to Scorpio Gold Corp. (TSX Venture: SGN) in exchange for an aggregate deemed purchase price of US $7.5 million in cash, stock and other considerations.

Under the Agreement, the sale of Golden Phoenix’s 70% interest is subject to the satisfaction of certain conditions, namely, Scorpio Gold must complete certain financing efforts and also must receive the approval of the TSX Venture Exchange, a process, it said has already been initiated and is expected to conclude in the first quarter of 2010.

The agreement assigns Scorpio Gold the right and initial responsibility, upon closing, to fund, manage and operate the Mineral Ridge mine to the benefit of both partners.

The parties also plan to concurrently enter into a joint venture operating agreement to own and operate the properties.

The Mineral Ridge project, a former producer, is located about 30 miles west of Tonopah, Nevada and has historically produced almost 575,000 ounces of gold, which includes around 170,000 ounces from open pit and approximately 405,000 ounces from underground mining operations.

Nevada-based Golden Phoenix Minerals is engaged in acquiring, developing and mining superior precious and strategic metal deposits in North America. Golden Phoenix owns the Mineral Ridge gold and silver property near Silver Peak, Nevada and the Northern Champion molybdenum mine in Ontario, Canada.

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