$DUCP Acquires $27 Billion in Gold Reserves
By: staff reporter, John Bodger
Last Updated: May 29, 2012 - 11:55am EST
(NEW YORK) --(NEW YORK) --Daulton Capital Corp. (OTC:DUCP), announced the acquisition of nearly $27 billion in Gold mining reserves in a reverse merger.
The Company announced it had entered into an agreement to acquire Grimsby Investments Limited and its subsidiaries including two Australian Companies engaged in a Gold mining project known as the ARX Springs Gold project, located in the Wide Bay Burnett Region of Queensland, Australia.
The agreement provides for the company to acquire Grimsby Investments Limited from its shareholders together with its Singapore company ARX Springs Pte Ltd and the two Australian subsidiaries that hold the gold project known as ARX Springs in exchange for $4,298 billion in consideration, to be satisfied by the issue of 4.148 billion in restricted common stock, $75 million in non-convertible preferred share series with 5 votes per share and $75 million in a ten year non-convertible promissory note issued in favor of shareholders of Grimsby Investments Limited.
The ARX Springs Gold property is located at Coonambula near Eidsvold in Queensland, Australia, and has gold resources estimated at between 16,000,000 to 18,000,000 (Sixteen to Eighteen Million) ounces of gold and estimated to generated a cash flow of $22 billion over the planned 20 year life of the mine based on current gold prices.
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Ludlow Capital, and equity research firm based out of New York City, issued a note that even with 4 billion shares outstanding, and taking in just account of 10% value of their Gold reserves of $2.7 billion, that would give DUCP a fair target of at least around $0.40 to $0.50 per share, and real prospects for up listing to possible AMEX exchange.
DUCP was up nearly 66% in morning trading at a price of $0.12 per share.
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