SOURCE: Golden Eagle International, Inc.

July 07, 2005 12:41 ET

Golden Eagle Raises Equity Funding

Company Director Demonstrates Faith in Bolivia

SALT LAKE CITY, UT -- (MARKET WIRE) -- July 7, 2005 -- Golden Eagle International, Inc. (OTC BB: MYNG) announced today that it has raised $100,000 from four accredited investors in equity funding through the sale of 10 million shares of its common restricted stock.

The proceeds will be used to meet several critical operational needs in Bolivia and in the U.S. The Company intends to allocate some of the funds to support finalizing its environmental permit on its Buen Futuro project in eastern Bolivia's Precambrian Shield. Additionally, it will pay important payments under its acquisition contract for the Buen Futuro mining concession and other operational expenses.

"A company affiliated with our newest director, H. Roy Shipes, invested $30,000 in our restricted common stock, and three other current, accredited shareholders were inspired by his confidence in the company and put in the balance," stated Terry C. Turner, Golden Eagle's CEO. "These investments underscore Roy's confidence in Golden Eagle."

Golden Eagle also announced that Mr. Shipes, who is also the CEO of Atlas Precious Metals, Inc., on June 28 signed a joint-venture contract on Atlas' behalf with COMIBOL, Bolivia's national mining company, for the rehabilitation and operation of the Karachipampa lead and silver smelter in western Bolivia. In the contract, Atlas committed to invest $85 million for the addition of a zinc refinery with an annual capacity of 80,000 fine tonnes. It is planned that the Karachipampa smelter will employ 650 workers and inject new life into this economically depressed region of Bolivia. Golden Eagle was not involved in this transaction.

"Atlas maintains a strong faith in Bolivia as an excellent venue for mining and mineral processing operations," stated Mr. Shipes. "I joined Golden Eagle's board for the same reason -- to demonstrate that faith by making every effort to get the Buen Futuro project funded and to bring it on-line in the shortest time possible. Then the goal will be to grow the project into the kind of gold and copper operation that Golden Eagle's shareholders have a right to expect. With record copper prices, and gold holding at very high levels, we are more enthusiastic about Buen Futuro than ever."

The Company also announced that Max Staheli has resigned as a director. Mr. Staheli stated that with the appointment of H. Roy Shipes, "the board is in capable hands to lead this company forward and improve its fortunes." Mr. Staheli also indicated that he resigned because of the liability exposure of directors in public companies; because there is no current benefit to serving as a director; and due to his lack of influence on the management of the Company.

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.

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