Great West Gold, Inc. -- Restructuring Of Company; Company Outlines the Salient Points of its Restructure
NEW YORK, Sept. 27, 2006, Sep 27, 2006 (PRIMEZONE via COMTEX) -- Great West Gold, Inc. (Pink Sheets:GWGO) confirms as per its announcement dated September 8, 2006, that the Company has conducted an intensive review of its business plan and its operations. This is in response to the consistently low stock price which values the Company at a massive discount to its underlying value. Management cannot and will no longer, continue to allow stockholder value to suffer due to the non-performance of the Company's stock price. These drastic changes are being brought about due to the consistent lack of performance in the Company's stock price.
This Announcement is being kept very brief, but the Company will be issuing detailed announcements on each of the corporate actions as outlined below, over the next few days. These corporate actions are designed to immediately "unlock" significant value for the stockholders and to, hopefully, eliminate the massive discount between the Company's Stock Price and its Net Asset Value per share of Common Stock.
Great West Gold, Inc.:
-- To Acquire "Bonanza", "Storm Cloud", ""Starlight", "Venezia",
"Federal", "Buffalo Lime Cap", "Red Cloud", "Storm King" and
"Gladstone Lookout" Gold Mining Projects.
-- To Acquire "Swansea", "Tip Top" and "Mineral Mountain" Copper
Mining Projects
-- To distribute stock to its stockholders in the remaining six
Mining Holding Companies
-- To dispose of all of its Mining Interests to three quoted OTC
Pink Sheet Companies through Reverse Mergers. Will result in the
creation of two new quoted Gold Mining Companies and one quoted
Copper Mining Company.
-- To distribute all of its Mining Assets to its stockholders, the
Mining Assets will all be held in the three new OTC Pink Sheets
Mining Companies
-- To make a significant acquisition in another Industry Sector
and to exit the Mining Sector in the next three months
Other Corporate Actions:
-- St James Capital Holdings, Inc. acquires all outstanding Loan
and Promissory Notes held against Great West Gold, Inc. from
various third parties
-- Considering a "Stock Buyback" Programme with a third party
Investment Group. The Investment Group has commenced their stock
buyback, with the acquisition, to-date, of 550 million shares of
the Company's Common Stock, all purchased of which was purchased
in and during this week
-- Will definitely be appointing an Auditor to bring the
outstanding Filings up-to-date
-- Will definitely be making an application to return to the
OTCBB Market
The Management of the Company has decided that stockholder interests are not being served by any further acquisitions in the Mining Sector and that the Company's existing Mining Projects require immediate further exploration with a view to eventual production. To this end, three of the Company's most valuable Gold Projects will commence further exploration work without delay. The Company completed these additional acquisitions as announced today, solely for the purpose of significantly enhancing the value of these three new quoted Mining Companies. Management of the Company has recognized that true value can only be created for its stockholders through this "break up" and distribution of the Company's Mining assets; and to leave the Management of these Mining Assets in focused and more experienced hands. Stockholders will be better served by announcements of the Mining Exploration Results instead of further Corporate actions and more acquisitions in the Mining Sector.
The Company's assets are being split into three separate quoted Companies through Reverse Mergers with existing quoted Companies on the OTC Pink Sheets Market, two of these Companies will focus on Gold and one of these Company's will focus on Copper.
Great West Gold, Inc. will hold a significant stake in each of these three quoted Mining Companies, these interests to be held in Western Diversified Mining Resources plc, a wholly owned subsidiary company of Great West Gold, Inc.
Great West Gold, Inc. will not be involved in the day-to-day operations of these three Companies as they will be managed by independent Management.
Great West Gold, Inc. will be announcing the "Record Dates" and "Pay Dates" next week for the last six Stock Dividend distributions.
Great West Gold, Inc. will, through Western Diversified Mining Resources plc, own stakes in these three companies. Great West Gold, Inc. intends to make a substantial acquisition in another Industry Sector, which upon completion, will result in change in the Company's Name and Trading Symbol. At this time, Great West Gold's remaining stockholding in these three Mining Companies will be distributed entirely to Great West Gold, Inc. stockholders and Great West Gold, Inc. will exit the Mining Sector.
The allocation of the outstanding Stock Dividends in respect of Bouse Mining Holdings plc, Ambassador Gold Holdings plc, Sentinel Resource Holdings plc, Copperstone Mining Holdings plc and Golden Eagle Mining Holdings plc are ongoing, as promised. The Company expects these to be completed shortly. Computershare Trust Company, Inc. has been appointed as Transfer Agent to these Companies. These shares are being held "on book" by the Transfer Agent to these Companies. The Transfer Agent will advise shareholders in writing as to the shares held "on book" on their behalf by the Transfer Agent.
Stockholders will be advised shortly, as to the detailed descriptions of each of the Mining Projects owned by the Company, the Exploration plans for various Mining Projects and their approximate valuations. At this time, the main exploration work will be focused on the "Mockingbird", "Bouse" and "Bonanza" Gold Mining Projects as they are the most valuable Projects in the Company's portfolio.
The Corporate Website will be updated this weekend to reflect all of these Corporate actions, and
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