Looks like TGA subsidiary has finger in pie as well. TGA has 51% of First Au Strategies (FAV) formerly West African Gold. This was posted on an Australian forum (www.hotcopper.com.au) and I havent verified it as I don't have access to Canadian news. I'd be grateful for confirmation.
First Au Strategies Corp -
First Au Internet acquisition and financing
First Au Strategies Corp FAV
Shares issued 1,371,673 1999-05-20 close $0.29
Friday May 21 1999
Mr. Bryan Frost reports
The company has entered into an agreement in principle with GET (Holdings) Limited to purchase all of GET's right, title and interest in intellectual property for interactive and on-line multiplayer pay to play chess games.
GET, a Malta-based company, is part of Gaming and Entertainment Technology Systems (GET Systems), based in Sydney, Australia, specializing in the development and deployment of on-line functional entertainment applications. Tibor Vertes, who is the principal of GET, will join the board of directors of the company on completion of the acquisition.
The purchase price consists of $300,000 cash, two million trading shares of the company in respect of reimbursement of costs incurred by GET in development of the system, and 2.8 million shares of the company to be earned out by GET based on cash flow generated by the business, or other appropriate milestones agreed to by the Vancouver Stock Exchange. The company will pay a finder's fee of $65,000 in respect of the acquisition.
On-line Multiplayer Chess
With an estimated 700 million players worldwide, chess has positioned itself as a truly international sport. When considering the evolution of the Internet and resulting technology it is anticipated that there exists a significant market for an on-line multiplayer chess site that partners the number of chess players with developed technology.
It is intended that two implementations of multiplayer chess be featured on the site. First, standard chess games where the user gets to choose whether to play against another human or a computer. Second, speed chess where users can play against another human or the computer, but in speed chess users race against the clock and the other player.
Regular tournaments will be held in both types of chess games with prizes for the successful players. Tournaments may be advertised with particular themes and will draw players of all ages from across the world. All players will have associated with them a calculated ranking as a result of games played on the site against the computer and other players. This ranking will enable tournaments to cater to particular levels, with ranking restrictions on entry to certain tournament categories. For example, if you have a high ranking you will be eligible to enter the professional section of the tournament, but not eligible to enter the beginner section of the tournament.
Chess celebrities and grand masters will be available on the site for on-line interviews with users on special occasions. Certain celebrities will be sought to endorse the site and its various tournaments. They will also be available to play against winners of tournaments as part of the tournament prizes.
A database of past games will be available to be replayed on demand. This database will include historically significant games, as well as games that teach particular moves and styles of playing. There will be a tutoring section to the database which details moves and styles of famous players. Live games from tournaments will also be broadcast move by move on the site, as well as special chess events such as the world championships. This will allow users to literally check in for a live update and see all games in play.
The site will feature an on-line mall selling a broad range of chess products. The mall will also feature the site's own branded merchandise, and signature products from chess celebrities and grand masters.
The site will feature latest chess news and information, as well as chess history and facts. Major chess events will be covered in the news section, with results and interviews published on the site. There will also be an open forum section which publishes editorials and opinions. Facilities will be available to all members to respond to and publish letters of their own in the open forum section.
The site will feature fully functional chat rooms where people can meet or talk before starting games. These chat rooms will also be used for live on-line chess celebrity interviews. Members will also be able to send real time messages to other members and leave messages for members who are not currently logged in.
Revenue will be generated through a variety of sources. Annual membership fees: by creating a community with a complete and diverse chess based entertainment experience the site will be able to charge an annual fee for membership. Advertising sales: by aggregating an audience and attracting traffic the site will be able to sell site space to advertisers and sponsors wanting to reach that audience. Registration by users captures demographic and psychographic information and special interests that make the database of users a valuable commodity. Fees on commerce (product sales): by developing the multiplayer chess site into a commerce centre with secure transaction methods, sales are anticipated to become a significant source of revenue. Traditional chess products and personal signature products of chess celebrities will be offered through the site. The multiplayer chess site will receive a participation fee from each transaction. Merchandising: the site's own logo merchandise will be sold and used as prizes. Promotional consideration fees: advertisers/sponsors will pay a fee for being listed in a promotional consideration area. Having game site advertising companies as partners is another revenue model. In addition, revenue opportunities are available through licensing fees for sale of original games to television, Web vision and digital TV; content fees from commercial on-line Internet services; tournament play fees; and CD-ROM game sales.
The multiplayer chess site will license most of the technology used from GET Systems. New features developed in addition to current technology by GET Systems specifically for the multiplayer chess site will become the intellectual property of the multiplayer chess site.
Financing
In conjunction with, and as an integral part of the acquisition, the company has arranged a private placement financing of $1.1-million consisting of five million units at 22 cents per unit. Each unit will consist of one common share and one two-year share purchase warrant. Each warrant will entitle the holder to purchase one additional common share at 45 cents in the first year and at 60 cents in the second year. No finder's fees are payable in respect of the private placement.
The private placement proceeds will be applied to finance the cash portion of the purchase price, to provide initial financing for licensing, development and set up costs of the system, and to address the company's current working capital deficit.
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