Polion do Brasil to invest US$3.5mn in Golden Eagle

Salt Lake City-based Golden Eagle International (OTCBB: MYNG) has signed an agreement to receive US$3.5mn from Brazilian investment group Polion do Brasil in return for shares, the former said in a statement. The funds will allow Golden Eagle to advance construction of its Buen Futuro project in eastern Bolivia, including starting to dismantle its Gold Bar mill and plant located in Eureka, Nevada that will be shipped and re-erected at Buen Futuro. Proceeds will also be used to pay existing creditors and cover overheads during the dismantling and re-erection period, the statement said. The company is in talks with the Overseas Private Investment Corporation (OPIC) and the Andean Development Corporation (CAF) on debt financing arrangements to complete funding for the Buen Futuro project. Polion do Brasil will invest the money in equal monthly installments over 10 months, with the first US$350,000 due to be received by April 1 this year, the statement said. Under the deal, Polion do Brasil will receive 3.5 million Golden Eagle convertible preferred shares at US$1.00/each. Over the last year, Golden Eagle has carried out site preparations, surface rights acquisitions and infrastructure improvements at Buen Futuro, which is about 250km north of Santa Cruz. The company forecasts Buen Futuro should recover approximately 5,900oz/m gold at direct production costs of US$70/oz. Copper production is expected to start after six months of operations. Buen Futuro has current estimated proven and probable reserves of 84,000oz of gold and 82Mlb of copper, according to the statement.