SOURCE: Golden Eagle International, Inc.

June 02, 2005 08:30 ET

Golden Eagle Confirms Free and Clear Ownership of Gold Bar Mill and Plant

Company's $3.6 Million Purchase Price Returns to Net Equity

SALT LAKE CITY, UT -- (MARKET WIRE) -- June 2, 2005 -- 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.

Contact Information

  • CONTACT:
    Sabrina Martinez
    Investor Relations
    (801) 619-9320