Fortress Financial Group, Inc. - Final Disposal of Company's Gold Mining Investments
8:00a ET October 24, 2007 (Business Wire)
Fortress Financial Group, Inc. (PINKSHEETS: FFGO) announced on October 18, 2007 that it that it was in advanced negotiations to dispose of its interests in the following gold mining exploration properties: "Mockingbird", "Golden Eagle" and "Ambassador"; to a quoted Company in the USA.
The Company is now in a position to confirm that this transaction is expected to be concluded shortly.
The Company, in the same announcement, disclosed that was in preliminary discussions to dispose of the balance of its interests in its two additional Gold Mining Exploration properties; namely "Bouse." and "South Copperstone".
The Company is in a position to confirm that it is now in the final stage of negotiations in respect of this transaction, being the sale of interests in "Bouse" and "South Copperstone" and it is now expected that this transaction will be concluded without any further delay. This sale is being transacted with another USA quoted Company.
The successful conclusion of these two transactions will leave the Company with a significant stock holding in two separately quoted Mining Exploration Companies. It is intended that the Company's stockholdings in these two companies, be distributed primarily to its stockholders, the balance of these stockholdings to be retained by the Company to create additional funding from a portion of the sales of these stock holdings to expand its interests in its core "debit card and payment solutions" business at a far more aggressive pace. The Company expects to announce significant developments in this core area of our business, very shortly.
GENERAL NOTES:-
The negotiations in respect of the sale of the "Mockingbird", "Golden Eagle" and "Ambassador" Gold Mining Exploration properties; are being conducted with a publicly quoted company in the USA.
The negotiations in respect of the sale of the "Bouse" and "South Copperstone" Gold Mining Exploration properties; are being conducted with a separate publicly quoted company in the USA.
This would result in the immediate and proper exploration being conducted on these Gold Mining Exploration properties, a very strong incentive to the Management of your Company and to the minority stockholders in these five Gold Mining Exploration properties.
The Company is not prepared, at this time, to offer any predictions upon the possible impact upon the Company's asset value, until the successful conclusion of this transaction, save to say that it will be enormously increased due to the Company receiving quoted stock; a "better valuation model" for investors as compared to our Company holding these "passive" Gold Mining Exploration properties in our "Investment Portfolio". The result of these transactions will be an accurate valuation being placed upon the Company's shares of Common Stock.
The recent record highs in the price of Gold have been of massive benefit to the Company's stockholders; and the Management of the Company is relieved that it took its time to examine all of its options in respect of its Mining Investment Portfolio. Stockholders may rest assured that they will continue to benefit from the Company's large exposure to the Gold price; as they will receive the majority of the quoted stock in these two quoted companies, through the Company's planned distribution of these quoted stocks to its stockholders, following the successful conclusion of these transactions.
The Management of this Company is delighted that finally, the true value of the Company will be demonstrated, given its dismal stock price performance of late; the stock price of which, remains incredibly undervalued as at the date of this announcement. The Company welcomes the financial impact and the outcome of the conclusion of these transactions, which will reward many patient long term investors in this Company.
Stockholders will be advised as to further details in respect of these two transactions, as and when we are permitted to release further details. It is incumbent upon the Company not to disclose the identities of the two publicly quoted companies with whom we are in final negotiations until such time as they advise their own stockholders accordingly. Our stockholders will nevertheless, be advised on a weekly basis, as to the status of these two transactions.
RATIONALE FOR THESE TRANSACTIONS:-
The Company is committed to rapid growth of its financial service interests and to "unlock" value for its stockholders (as well as the minority stockholders in the Gold Mining Exploration interests). This is very long overdue, in the opinion of the Company's Management.
The current "Commodity boom", particularly in Gold, has paid off for the Company, allowing us much flexibility in our negotiations given the huge amount of unsolicited interests and proposals that the Company has received in respect of its portfolio of Gold Mining Exploration assets, a factor that appears to gone unnoticed by the market, given the Company's dismal stock price performance.
The successful completion of these transactions fulfills our ambitions to reward our stockholders through the "unlocking" of the value of these Gold Mining Exploration properties to (a) provide large amounts of working capital for our Financial Service interests to facilitate immediately enhanced earnings and cash flow; as well to complete certain (as yet unannounced) proposed acquisitions, to rapidly expand our interests in this sector (b) provide our stockholders with stock publicly traded stock (directly) in these Gold Mining Exploration Companies through the distribution of the majority of our stockholdings received through these transactions and (c) to reward the loyalty of long standing stockholders who have watched the erosion of the stock price and their ability to exchange their unquoted stockholdings in the five Gold Mining Exploration Companies for publicly traded stock.
About Fortress Financial Group, Inc.
Fortress Financial Group, Inc. (formerly Great West Gold, Inc.), was a gold mining exploration stage company, engaged in the acquisition and exploration of mining properties in the United States. The Company retained these Gold Mining Exploration interests as portfolio assets; it intends to extract value from these assets through a future "spin off" or a sale. Great West Gold, Inc. has now changed its name to that of Fortress Financial Group, Inc. following its entry into the financial services sector. The Company is now primarily engaged in the issuing and marketing of prepaid debit and credit card and related payment solution activities.
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.
SOURCE: Fortress Financial Group, Inc.
Fortress Financial Group, Inc. Stephen Lumb, 914-462-3475 investor@fortfinancegroup.com
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