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Golden Arrow's Royalty Cash Flow Begins
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Golden Arrow Resources Corporation (GRG -- TSXV) ("Golden Arrow" or the
"Company") is pleased to announce that the Company has received notice
from Yamana Gold Inc. ("Yamana") that it will receive US$138,658 as
first payment of its 1% net smelter returns royalty ("NSR") from the
initial production at its Gualcamayo gold mine, located in San Juan,
Argentina.
Regular quarterly payments will be made on January 31st, April 30th,
July 31st, and October 31st, of each year for the life of mine, with
the next payment scheduled for July 31st, 2009. At the current spot
gold price Golden Arrow anticipates annual cash flow from the NSR
ranging from CDN $2,000,000 to CDN $2,500,000 per year. At the current
spot gold price, the approximate net present value "NPV" at a 5%
discount rate of Golden Arrow's 1% NSR ranges from CDN $15,000,000 to
CDN $22,000,000. The current fully diluted market capitalization of the
Company is CDN $18,000,000. Golden Arrow's treasury has over CDN $2
million.
"When the 45,000 hectare Gualcamayo project was under our management,
the several years of exploration work we carried out makes us strong
believers that the current deposit has great potential to increase in
the future years," stated Joseph Grosso, President & CEO. "Golden Arrow
considers the royalty to have an exciting future growth potential."
Royalty Background
In February 1994, Grosso Group management created Minas Argentinas
S.A., which accumulated 97,500 hectares of property in highly
prospective regions of
Argentina, including the 45,000 hectare
Gualcamayo project. During 1996 and 1997 two successful phases of
exploration drilling were carried out by Minas Argentinas S.A., under
the stewardship of Joseph Grosso, which resulted in the initial
discovery that has now grown into the producing Gualcamayo gold mine.
These projects were subsequently acquired by Yamana. Golden Arrow holds
an uncapped 1% NSR on these properties, which are located in high
potential areas in proximity to Barrick Gold's Pascua-Lama and
Xstrata/New Gold's El Morro deposits. All these properties have notable
exploration results and hold promise for future discoveries.
Golden Arrow's Management Team is one of the most experienced in the
field today. The Company is focused in
Argentina and Peru in highly
prospective mining regions with several drill ready projects including
Portrerillos and Rio de las Taguas, located adjacent to Barrick Gold
Corp.'s Pascua Lama project that is moving into production. With the
Company's Management and Technical teams it is well positioned for
continued growth.
ON BEHALF OF THE BOARD
"Joseph Grosso"
Mr. Joseph Grosso, President & C.E.O.
For further information please contact Joseph Grosso, President & CEO,
or investor relations, at 1-800-901-0058, or 604-687-1828, or fax
604-687-1858.
The TSX Venture Exchange does not accept responsibility for the
adequacy or the 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.
2009 Number 9
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Copyright (c) 2009 GOLDEN ARROW RESOURCES CORPORATION (GRG) All rights
reserved. For more information visit our website at
http://www.goldenarrowresources.com/ or send
mailto:info@goldenarrowresources.com
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