Wednesday, May 24 2006 11:22 AM, EST
Drake Gold Resources Inc. Outlines Corporate Strategy
CENTURY CITY, CA -- (MARKET WIRE) -- 05/24/06 -- Drake Gold Resources Inc. (OTCBB: DKGR) (PINKSHEETS: DKGR) is pleased to outline its vision as a natural resource company and its plans to increase the company's value. As previously announced, the company is in the final stages of a transition from its previous business model, and is eager to present the company's evolved mission and current position to its shareholders.
Drake Gold Resources, Inc. is an early-stage company in the natural resource industry. It has assembled a growing team of professionals to guide its strategic acquisition and expansion plans. Its mission is to become a diversified natural resource company that will derive a variety of cash flows from diverse mining/harvesting operations.
DKGR intends to be a diversified company by operating in the natural resource, petroleum, and alternative energy markets. As a result of ever-increasing scarcity, the market for natural resources is clamoring for diversification and innovative exploration tactics. Potential opportunities for diversification include diamond, gold, silver, copper and other minerals in areas such as Arizona, Oregon, Alaska, British Columbia, the Yukon Territories, and other affiliated sections throughout gold districts in Northern Mexico. DKGR also plans to capitalize on current and long-term trends in energy prices to operate in the petroleum and alternative energy markets.
The Company has signed a Letter of Intent dated March 22, 2006 for the acquisition of its initial target for exploration and production, a property located in a prime region of southeastern Arizona. Further details of the completion of this acquisition and its terms will be released in a timely manner, as well as further announcements regarding other properties.
While still trading below a dollar, DKGR is utilizing the creative financing strategies that many emerging companies successfully employ.
First, the Company intends to limit dilution by engaging in joint ventures to raise working capital, rather than through the issuance of additional shares. The Company will benefit from the increase in the value of assets under portfolio by attracting capital into majority owned subsidiaries.
Second, with the recent change in management, the new management team has purchased a significant portion of outgoing management's shares and intends to retire some of them. The company does not have any plans at this time to restructure the Company's capital, via forward or reverse splits, because its established structure is intended to promote liquidity and awareness in the public market.
Furthermore, management realizes that trading as a pink sheet company has its limitations. Therefore, it intends to move the company's listing to the OTC-BB. Even though this will increase the company's compliance costs, management has the team in place to upgrade the company, and expects doing so will enable the company to maximize its potential. By becoming a fully reporting OTC-BB traded firm, DKGR expects to improve its credibility and investor confidence. Management is also looking into foreign alternative markets, such as London's Alternative Investment Market (AIM) and the Frankfurt Exchange, to increase the company's access to capital.
Current and future shareholders are encouraged to sign up for email updates. The new Company website provides current news releases, reports, interviews, industry news and market related information. To sign up, click on the link located under the main menu at drakegold.com.
Shareholder inquiries and suggestions are welcome and should be directed to the Drake Gold, Investor Relations Team at (toll free) 1-888-601-9983, internationally at 1-503-618-0370, or via email at info@novakcapital.com.
About Drake Gold Resources, Inc.
Drake Gold Resources, Inc. is an early-stage mining and energy company that focuses on the exploration and production of precious metals, diamonds and energy, such as petroleum and coal. Several projects have been identified through Thunder Gulch Resources, Ltd. and its resources in North America. Announcement will be made as agreements are completed.
This press release contains forward-looking statements involving risks and uncertainties including statements regarding the Company's future performance. Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to or implied by such statements. In addition, actual future results may differ materially from those anticipated, depending on a variety of factors which include, but are not limited to, our ability to leverage our technology, manage our growth, protect our intellectual property rights, attract new customers and general economic conditions affecting consumer spending, including uncertainties relating to global political conditions, such as terrorism. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company does not intend to update any of the forward-looking statements after the date of this release to conform these statements to actual results or to changes in its expectations, except as may be required by law.
Investor Relations Department Domestic: 1-888-601-9983 International: 1-503-618-0370 Email: info@novakcapital.com |
