N E W S
NEW YORK, Oct. 13, 2006 (PRIMEZONE) -- Great West Gold, Inc. (Pink Sheets:GWGO)
confirms as per its announcement dated September 27, 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.
These corporate actions are designed to "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.
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.
Valuation of Great West Gold, Inc. Mining Assets
Great West Gold, Inc. 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." At a valuation of not less than US$300 million, stockholders will
appreciate the Company's rationale for these transactions, this conservative
valuation being significantly higher than the Company's valuation at this time.
Great West Gold, Inc. is not prepared, under any circumstances, at this time,
to place a higher valuation 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 three
transactions as set out in this announcement.
Great West Gold, Inc. wishes to stress that, at this time, the main exploration
work will be focused on the "Mockingbird," "Bouse" and "Bonanza" Gold Mining
Projects as they are considered to be the most valuable Projects in the
Company's portfolio.
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.
CONTACT: Great West Gold, Inc.
+ 44 845 127 4051
investor@greatwestgold.com
