Golden Arrow Update from President
Golden Arrow Resources Corporation (TSX-V: GRG, FSE: GAC (WKN: A0B6XQ), "Golden Arrow" or the "Company") is pleased to provide an overview of the Company's strategy and upcoming activities planned for 2012 and beyond.
Management, with your consent, wishes to take positive steps to capture the great opportunity offered by the current market downtrend which is creating the opportunity to acquire advanced projects at substantial discount prices. This is an opportunity not to be missed.
By selling the Company's 1% NSR on the Yamana Gold's Gualcamayo Mine, we will be able to leverage cash from the royalty in a way that the quarterly royalty income never could. Management intends to use funds from the sale to acquire undervalued advanced assets that the current economic environment presents. We invite you to participate in this growth opportunity by supporting Management's recommendation to sell the royalty on the Gualcamayo Mine, which was discovered by our organization in 1998.
With approximately $20 million in the treasury, pending completion of the royalty sale, we will have the opportunity to select and purchase advanced assets with defined resources and the potential for resource expansion, eliminating the risk typically associated with early exploration. Golden Arrow is actively reviewing and sourcing discounted advanced projects with the intent to fast track the advancement of one or more new assets toward the pre-feasibility stage.
This strategy will be focused primarily on joint venturing its early stage exploration projects, all 100% owned with no vendor payments (except one), in favour of attracting partners who will continue the development of our projects, such as we are currently doing with our Mogote project.
To execute our plan it will require the reorganization of management and board of directors in order to have the skills set needed to effectively move the Company from an early stage junior explorer to an advanced stage project development company, who's assets could become attractive acquisition targets by major producers.
- Leverage the proceeds of the royalty to acquire advanced assets and fast track their expansion to prefeasibility to attract a major producer's interest thus maximizing shareholder value; and,
- Joint venture the Company's existing projects to enable it to retain carried interests and no exploration costs, with the added potential for discoveries as our projects are located in key discovery zones and have already yielded the Company two world class discoveries, including Gualcamayo Mine.
Golden Arrow has evolved into a very prosperous junior mining company with a strong platform of professionals, a track record of success and an exceptional property portfolio that has already yielded two world class discoveries. With an attractive share structure of only 55 million shares, strong treasury and redefined business strategy for increased value growth, Golden Arrow endeavours to be a top junior mining company, continuing to deliver the value our shareholders expect.
About Golden Arrow:
Golden Arrow is a Vancouver-based explorer and prospect generator focused on identifying, acquiring and advancing precious and base metal projects in Argentina with the goal of achieving a world class discovery. The Company is well positioned for growth of shareholder value with the pending sale of its 1% NSR on Yamana Gold Inc.'s Gualcamayo Gold Mine to Premier Royalty for $17.75 million pending shareholder approval (details in GRG News Release dated may 24th, 2012), ongoing drilling at the advanced Chinchillas Ag-Zn-Pb project, and an attractive portfolio of highly prospective exploration projects and a pipeline of new opportunities under review. Golden Arrow will continue to execute its strategy to leverage the Company's exploration exposure by attracting partners to fund work on its portfolio of high quality mineral projects. Golden Arrow is a member of Grosso Group, a management company specialized in resource exploration, and working in Argentina where it is highly regarded and trusted since 1993.
ON BEHALF OF THE BOARD
Mr. Joseph Grosso, President & CEO
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Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Readers are encouraged to refer to the Company's public disclosure documents for a more detailed discussion of factors that may impact expected future results. The Company undertakes no obligation to publicly update or revise any forward-looking statements. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.