WLFO - Apr 28, 2004 4:20:00 PM
AUSTIN, Texas, Apr 28, 2004 (BUSINESS WIRE) --
Wulf International LTD (OTCBB:WLFO), with offices in Texas and Arizona, announced today that it has placed its first major real estate acquisition into escrow (see www.wulfintl.com).
The standing equity position will be reversed in its entirety by the multi-million dollar acquisition of a sand and gold dredging property located in the southwestern United States. The industrial property comprises nearly 500 acres and Wulf will assume 60% ownership of the operation, netting an immediate, adjusted book value of over $19 million in real estate equity. This will instantly eliminate the short capital and asset positions that the Company has accumulated.
The Seller has agreed to accept cash and equity in Wulf with the provision of long-term warrants and a current stake in existing, authorized and issued common stock provided by American and Canadian shareholders of Wulf International LTD. The operation will be managed by Blomquist Technologies, a second-generation, patented veteran of contract extraction and mining operations. This acquisition is the first of a six-asset holding plan to be executed during the next nine months, and one of three companies currently in escrow.
According to the Seller: 'The (property) contains approximately 90 million tons of construction grade sand and gravel, 20 million tons of peat and 55 million tons of available material on public lands that can be acquired. Core sampling (as attested to in the Smittel report) revealed the presence of several aggregate products, blast sand, pea gravel, peat, gold and other products.'
Per Damien Cota, chairman &CEO of Wulf International: 'One of the prevailing highlights of this acquisition is the beauty of its timing. The company is just exiting a 13-month restructuring plan that overhauled its business model and management structure, and the addition of a large industrial property is the perfect compliment to a year's worth of work. In terms of business, the entire (construction) market is fully documented as being awash with need, and a skeleton crew can excavate just over 14,000 tons of material a week.'Cota further notes that this is a fraction of a short-term plan to move Wulf from the OTCBB (where it has been plagued with short sales by market makers) to active trading on NASDAQ.
Cota continues: 'There has to be an air of humility when you look at the scope of what we have accomplished, Wulf operated for several years without enterprises that shareholders could physically see for themselves -- the assimilation of this operation into Wulf's new business plan adds a much-needed touch of legitimacy.'
According to Diane Miller, a director of Wulf: 'Shareholders will be surprised when they see how close and big the property is -- especially since they either know its location, or at the very least, can access information through the Internet and public records. Our Sellers stand to make an extraordinary amount of money through their joint ownership. Of course, they will now be 'public,'so their stock ownership in Wulf compounds the return, exponentially.'
The selling price for some of the finer aggregates is considerably higher than the basic sand and gravel materials, which are currently wholesaling between $8.30 and $12.90 per ton -- the company bases its expectations on less than $8.00 per ton -- much of it pre-sold. Existing core samples of the property, along with previous engineering studies, predict that gross revenues of production for sand, gravel and peat can exceed $70 million annually. Additional revenue that is nearly tantamount to the standard excavation (in excess of $30 million annually) can prevail by the gold-dredging technology working simultaneously on the property.
Per sworn court documents: Fourteen (14) core samples of the ground material registered an average of .02 troy ounces of gold per ton of bank run material (this, trading at well over $300 per ounce). Research concurs that this is an attractive grade of element content that substantiates the investment that will yield over $100 million dollars to Wulf during the next decade. Eventually, of 300 days in the first year, mining operations could continue for approximately 16 years at the rate of 800 tons per hour producing 120,000 oz. of gold per year, or ($28.9 million) per year (to Wulf) in gold revenues alone.
Imminent news on the arrival of the 2002 10-K will compound the anticipated value of the company. Per Miller: 'It's a poetic ending to a long struggle. Wulf is one of the few companies this year able to exit restructuring without filing bankruptcy, and certainly, a member of a small minority that reorganizes successfully with a multi-million dollar title under its name. Here's an asset that will easily put $15 million dollars a year into a company that hasn't seen revenue in a dozen years.'
The current available reserves of approximately 165 million tons of excavating and dredgable mixed aggregate material assure the operation can continue for over 15 years. Combined with gold dredging, existing mining and dredging permits that allow perennial excavation along the riverbank -- the company will realize cash immediately and long-term -- creating equity for the other four mining operations and the numerous retail and mortgage companies.
For more information, please refer to the Web site: www.wulfinternational.com or contact Wulf International at 480-488-5148.
Forward-Looking Statements: Statements in this press release other than the statement of historical fact, including statements regarding the company's plans, beliefs and estimates are 'forward-looking statements.'Such statements are subject to certain risks and uncertainties, including factors listed from time to time in the company's SEC filings, and actual results could differ materially from the expected results. These forward-looking statements represent the company's judgment as of the date of this release.
SOURCE: Wulf International LTD
Wulf International LTD Damien Cota, 480-488-5148 www.wulfinternational.com
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