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????? I am lost here. Im taking this as a negative sign. What does everyone think about this?
Great West Gold, Inc. -- Corporate Restructure Monday March 7, 8:00 am ET Company to Split Its Arizona Gold Projects Into Two New Companies, Raise Additional Funding and Escalate Its Operations
NEW YORK, NY--(MARKET WIRE)--Mar 7, 2005 -- Great West Gold, Inc. (OTC BB:GWGO.OB - News) announces that it is now "hiving off" its Arizona Gold Mining Projects into two new separate companies. These companies will operate independently of each other but remain under the control of Great West Gold, Inc.
The two new mining companies will each raise capital from external sources to fund the Company's mining plans for these projects. It is anticipated that this will result in an acceleration of the Company's plans to bring these Gold Mining Projects to production. The Management of Great West Gold, Inc. have deemed it to be unacceptable to raise any additional capital through any further issues of Great West Gold, Inc. shares of Common Stock, with the current share price being at unrealistic levels.
The Company recognizes that its dismal share price performance required an immediate corporate restructuring and to this end, it has been decided that it is not in shareholder interests for the company to continue to issue shares to raise further capital to fund its planned production of the Projects. The Company is focusing on and is committed to the adding of value for its shareholders, rather than any further dilution of shareholder value.
It is very likely that the Company will seek to introduce these two new Mining Companies to the Market as individual quoted entities on the OTC Market in the forthcoming months. It is expected that Great West Gold, Inc. would control not less than 75% of the outstanding shares of these new companies after these new companies have issued shares of their Common Stock for cash to complete their individual capital raising. It is envisaged that the two new Companies will have a fairly low number of outstanding shares and that these shares of their Common Stock will be restricted under Regulation 144, thereby protecting their shares prices in the market in respect of their "free trading" shares. The Company's existing Management and the Advisors to Great West Gold, Inc. would continue to manage and advise the two new Gold Mining companies.
The Company remains confident that its Gold Projects can be brought to a limited production level at an achievable capital cost and over a relatively short period of time utilizing fairly inexpensive mining processes.
Michael Saner, the Company's CEO, commented that over the past few months, the share price of the company has been languishing at exceptionally low levels. An analysis by the company's management into this situation have indicated that a strong contributing factor to this under-valuation of the company's assets, and consequent continued under-performance of its share price, required a drastic, yet innovative, corporate restructuring in order to restore shareholder value. The creation of these two new separate, well-funded and independently quoted Gold Mining Companies would accurately reflect the value of the Company's Gold assets and allow the Company's assets and operations to flourish in a relatively short period of time.
Great West Gold, Inc. will continue to update its shareholders on its progress in respect of the structuring of these two new Gold Mining Companies, their fund raising efforts and their progress in seeking admission to and obtaining a quotation on the OTC Market.
This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities.
About Great West Gold, Inc.
Great West Gold, Inc. (www.greatwestgold.com) is a gold exploration company that has acquired certain rights to mine for minerals, primarily gold, in Arizona.
Statements contained in this press release, which are not historical facts, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based largely on the Company's expectations and are subject to a number of risks and uncertainties beyond the Company's control, including but not limited to economic, competitive and other factors affecting the Company's operations, management team effectiveness, expansion strategies, available financing, market prices and recovery costs, government regulations involving the Company, facts and events not known at the time of this release, and other factors discussed in the Company's filings with the Securities and Exchange Commission.
These statements are not guarantees of future performance and readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to update publicly any forward-looking statements.
Contact: Contact : Great West Gold, Inc. info@greatwestgold.com
-------------------------------------------------------------------------------- Source: Great West Gold, Inc.
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