Kachina Gold Corporation Announces Strategic Expansion Program and Enters Discussions to Acquire Additional Gold Reserves 11/15/05
TOPEKA, Kan., Nov 15, 2005 (PRIMEZONE via COMTEX) -- Kachina Gold Corporation (Pink Sheets:KCHG), an emerging junior gold exploration and production company, is pleased to announce that it has entered the next stage of its corporate development, and has begun preliminary discussions for the acquisition of a number of mining properties in Arizona and California. Kachina has been approached by three acquisition targets with proven reserves in Arizona and California, and is currently evaluating their upside potential.
Kachina has already begun producing from its first gold mining property, located in Mohave County, Arizona. With production ramping appreciably at the property, and with the recent boom market for gold, the Company has decided to accelerate its corporate expansion strategy and explore acquisition opportunities to increase reserves and production over the near term. Given the current outlook for gold prices on the stock market and the current, highly fragmented state of the industry, the Company believes that there are a large number of synergistic fit acquisition targets throughout the industry, as mine owners seek development capital and expertise to bring properties into production status.
"This evolution in Kachina Gold's expansion strategy represents the next logical step forward for the Company, and affords the ability to take advantage of opportune conditions within the gold industry," commented Robert M. Gaither, President of Kachina. "Our decision to pursue a roll-up strategy acquiring mineral assets that are near revenue stream and with low cost production operations is critical to the long-term financial success of the Company. We expect to be able to bring significant results to our shareholders over the next several months as we further pursue this strategy of acquiring undervalued mineral bearing properties and bringing them into production."
About Kachina Gold Corporation
Kachina Gold Corporation (www.kachinagold.com) is an innovative new entrant into the white-hot gold mining industry. The Company has acquired a working interest in a number of historically producing mining claims located in the prolific gold producing region of Mohave County, Arizona. Kachina's claims were heavy producers over 70 years ago before the limitations of mining technologies forced abandonment. Kachina has established operating agreements with an experienced mining partner, and is already extracting ore out of the ground today. Upon completion of remediation and rework on these claims, Kachina expects to extract approximately 1 ton a year- or $14.8 million at today's gold prices.
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made on behalf of the company. All such forward-looking statements are, by necessity, only estimates of future results and actual results achieved by Kachina may differ materially from these statements due to a number of factors. Kachina assumes no obligations to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such statements. Investors and potential investors should independently investigate and fully understand all risks before making investment decisions.
Out of all the penny stocks that I have dabbled in, I believe this one has great potential. It is not focused on just one area of interest. FCDH has multiple interest in different fields of business. Guys....All its going to take is a little time and Patience. This stock has enormous potential. Keep your heads up and dont worry.
Posts: 1178 | From: Mobile, AL | Registered: Aug 2005
| IP: Logged |