NEW YORK, N.Y., Oct. 20, 2006 (PRIMEZONE) -- Great West Gold, Inc. (Pink Sheets:GWGO) has been inundated with requests for clarification of its restructuring plans as announced previously. The restructuring of the Company is very simply, as follows:
1. The Company's Gold and Copper Mining Exploration interests are being
disposed of to three separate OTC quoted Companies to form
"The Treasure King Gold Group," "The Sentinel Gold Group" and "The
Copper Mountain Mining Group."
2. The stock in each of these three OTC quoted Companies, received by
Great West Gold, Inc. will be distributed to its stockholders, in
full. Great West Gold, Inc. stockholders will still own the same
Mining assets that they hold at this time.
3. Great West Gold, Inc. will be acquiring a company which is not in
the Mining/Natural Resources Sector. Upon the completion of
that acquisition, Great West Gold, Inc. will effect a change of
name, Trading Symbol and CUSIP Number.
Great West Gold, Inc. had announced that it will not be placing a value of less than US$100 million on its direct stockholding in each of these three transactions, namely "The Treasure King Gold Group," "The Sentinel Gold Group" and "The Copper Mountain Mining Group." The Company is now in possession of reports that now allow it to place a value of not less than US$160 million on each of its holdings. At this total valuation of not less than US$480million, stockholders will appreciate the Company's rationale for these transactions, this conservative valuation being significantly higher (Not less than 13 times the Company's current market valuation) than the Company's valuation at this time. Whilst we can appreciate that certain of the Company's Mining Assets have had far higher valuations placed upon them, the Company considers it prudent to be conservative at this time.
Great West Gold, Inc. is not prepared, under any circumstances, at this time, to place a higher valuation, than stated, on its Mining Exploration interests, in the absence of updated reports from Competent Persons. The Company will be obtaining these valuations and updated reports, prior to giving effect to any of the three transactions as set out in this announcement.
The detailed version of these transactions, is as follows:
THE "TREASURE KING GOLD GROUP":
Great West Gold, Inc. announced that it significantly increased its Gold assets through the acquisition of the "Storm Cloud," "Venezia," "Starlight," "Buffalo Lime Cap," "Red Cloud," "Buffalo," "Federal," "Gladstone Lookout" and "Bonanza" Gold Mining Exploration Projects.
Great West Gold, Inc. already owns the "Treasure King" and the "Yaba" Gold Mining Exploration Projects. Great West Gold, Inc. intends to dispose of these Gold Mining Exploration Interests, being the "Storm Cloud," "Venezia," "Starlight," "Buffalo Lime Cap," "Red Cloud," "Buffalo," "Federal," "Gladstone Lookout," "Bonanza," "Treasure King" and "Yaba" Gold Mining Exploration Projects; to a (yet to be confirmed) OTC quoted Company to form "The Treasure King Gold Group," through a "Reverse Merger."
Great West Gold, Inc. will, upon completion of this "Reverse Merger" transaction, divest itself of its entire stockholding in the quoted, "The Treasure King Gold Mining Group," to Great West Gold, Inc. stockholders.
THE "SENTINEL GOLD GROUP":
Great West Gold, Inc. holds 51% of each of the following Gold Mining Exploration Projects:
"Ambassador" held through Ambassador Gold Holdings plc "Golden Eagle" held through Golden Eagle Mining Holdings plc "Bouse" held through Bouse Mining Holdings plc "Mockingbird" held through Sentinel Resource Holdings plc "South Copperstone" held through Copperstone Mining Holdings plc
Great West Gold, Inc. stockholders, through the declaration of Stock Dividends in November and December of 2005 and in January 2006, hold an amount of 40% of each of these Companies. The balance of the stock in each of these Companies, being 9.99%, is held by Searchlight Exploration, LLC.
Great West Gold, Inc. (along with Searchlight Exploration) intends to dispose of their combined 60% stockholding in these Gold Mining Exploration Interests, being the "Ambassador," "Bouse," "Mockingbird," "South Copperstone" and "Golden Eagle" Gold Mining Exploration Projects; to a (yet to be confirmed) OTC quoted Company to form "The Sentinel Gold Group," through a "Reverse Merger."
All of the stockholders, holding the balance of 40% in each of these Gold Mining Exploration Companies, will be offered the chance to exchange their stock in each of these five Gold Mining Exploration Companies for stock in "The Sentinel Gold Group," and on the same terms and conditions as Great West Gold, Inc. and Searchlight Exploration, LLC.
Great West Gold, Inc. will, upon completion of this "Reverse Merger" transaction, divest itself of its entire stockholding in the quoted, "The Sentinel Gold Mining Group," to Great West Gold, Inc. stockholders.
THE "COPPER MOUNTAIN MINING GROUP":
Great West Gold, Inc. announced that it significantly increased its Copper assets through the acquisition of the "Tip Top," "Mineral Mountain" and "Swansea" Copper Mining Exploration Projects. Great West Gold, Inc. already owns the "Copper Mountain" Copper Mining Exploration Project. Great West Gold, Inc. intends to dispose of these Copper Mining Exploration Interests, being the "Copper Mountain," "Mineral Mountain," "Swansea" and "Tip Top" Copper Mining Exploration Projects; to a (yet to be confirmed) OTC quoted Company to form "The Copper Mountain Mining Group," through a "Reverse Merger."
Great West Gold, Inc. will, upon completion of this "Reverse Merger" transaction, divest itself of its entire stockholding in the quoted, "The Copper Mountain Mining Group," to Great West Gold, Inc. stockholders.
RATIONALE FOR THESE TRANSACTIONS:
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, it is intended that three of the Company's most valuable Gold Projects should commence further exploration work, and without further delay. 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.
Great West Gold, Inc. will not be involved in the day to day operations of these three Companies, "The Treasure King Gold Group," "The Sentinel Gold Group" and "The Copper Mountain Mining Group" as they will be managed by independent Management.
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 new Mining Exploration Companies will be distributed entirely, to Great West Gold, Inc. stockholders, upon the completion of the three "Reverse Mergers"; and Great West Gold, Inc. will exit the Mining Sector.
Upon completion of these transactions, Great West Gold, Inc. Stockholders would hold the Company's stock in "The Treasure King Gold Group," "The Sentinel Gold Group" and in the "Copper Mountain Mining Group."
Stockholders are to be advised that these transactions will take some time to complete and Great West Gold, Inc. does not expect to complete any, or all of these transactions this year. The Company will not be declaring any further Dividends, the last distribution of stock to Great West Gold, Inc. stockholders will be the Company's stock in "The Treasure King Gold Group," "The Sentinel Gold Group" and "The Copper Mountain Mining Group"; and this only to take place in 2007.
About Great West Gold, Inc.
Great West Gold, Inc., www.greatwestgold.com, a gold mining exploration stage company, engaged in the acquisition and exploration of mining properties in the United States. The Company has Gold assets through its holdings in "Bouse," "Mockingbird," "Ambassador," "Yaba," "Golden Eagle," "Bonanza," "Storm Cloud," "Starlight," "Venezia," "Federal," "Buffalo Lime Cap," "Red Cloud," "South Copperstone" and "Gladstone Lookout" Gold Mining Projects. The Company's Copper assets are "Copper Mountain," "Swansea," "Tip Top" and "Mineral Mountain." The Company holds five of these Mining Assets through its 51% holding in Bouse Mining Holdings plc, Copperstone Mining Holdings plc, Ambassador Gold Holdings plc, Golden Eagle Mining Holdings plc and in Sentinel Resource Holdings plc. The other Mining Exploration Projects are 100% controlled by the Company. This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a companies' annual report on Form 10-K or 10-KSB and other filings made by such company with the SEC.