Global Credit Collapse
The global credit collapse of 2008-2009 devastated the financial markets. Resource stocks were especially hard hit. Many fell from 50% to 90% over a three week period in October 2008.
Incomplete Market Recovery
While many large cap mining companies have recovered from the credit crisis, many junior mining companies have recovered only part way. And some junior mining companies remain frozen out of the capital market altogether. Many of these companies are sitting on projects with near-term production potential.
As a result, many of these companies have:
- No access to investment capital.
- No geological support to target additional exploration.
- No drilling support to confirm additional discoveries.
- No expertise in permitting, bonding, legal or accounting issues.
- No ability to advance their project toward commercial production.
These companies represent the market opportunity for Golden Phoenix. Why? Because Golden Phoenix has the capability to provide:
- Introductions to sources of investment capital.
- Geological support to target additional exploration.
- Drilling support to confirm additional discoveries.
- Expertise in permitting, bonding, legal and accounting issues.
- Introductions to mine operators who can potentially take these projects into commercial production.
Acquiring and adding value to projects with near-term production potential is one way Golden Phoenix intends to add value for our shareholders.