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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 5, 2011) - Scorpio Gold Corporation (TSX VENTURE:SGN) ("Scorpio Gold" or the "Company") today announced that Golden Phoenix Minerals, Inc. ("Golden Phoenix"), its 30% joint venture partner on the Company's Mineral Ridge project (the "Mineral Ridge Project"), has entered into a debt financing arrangement (the "GP Debt Financing") with Waterton Global Value, L.P. ("Waterton"), Scorpio's existing lender. In connection with the GP Debt Financing, Golden Phoenix has granted Waterton an option (the "Waterton Option") to acquire Golden Phoenix's interest in the Mineral Ridge Project. Scorpio has consented to the Waterton Option and agreed that upon the exercise of the Waterton Option, Waterton will become Scorpio's joint venture partner in the Mineral Ridge Project. In connection with the GP Debt Financing, Golden Phoenix and Scorpio have agreed to amend certain terms of their joint venture, as described below. |
