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Southern USA Resources Inc., a Delaware corporation (the "Company"), has encountered difficulties in its gold production process. Specifically, based on measurement of gold bearing ore going into and coming out of its production equipment, gold that is present is not being captured in the process in sufficient quantity. The Company has therefore decided to temporarily cease its production activities until it can make the necessary adjustments to its processes and equipment, and/or add additional equipment, which it believes will allow it to produce commercially viable quantities of gold. The Company is interviewing mining industry professionals to assist it in revising its plan for gold recovery.
As a result of the cessation of production activities, the Company has temporarily laid off five production workers and its only remaining employees are its CEO, Charles Merchant, and Director of Operations, Roger W. Szelmeczka.
As a result of the foregoing developments, any revenue forecasts can no longer be relied upon.
Item 8.01. Other Events.
The Company has been made aware of certain promotion materials that were distributed by Rising Stock Advisor which make various statements about the Company, its operations, valuation and stock. The Company had no role in preparing such materials, did not pay for them and was unaware that these materials had been prepared. The Company has obtained a copy of these materials on the internet and based on its review, these materials should not be relied upon.
The Company and its board of directors continue to believe in its business and that there is commercially recoverable gold on its property. The Company plans to continue its efforts to improve its production processes with the goal of commercial gold production.
