MIAMI--(BUSINESS WIRE)--July 17, 2001--CIS.com Inc. (OTC:CISI) would like to take this opportunity to provide investors with additional information on the Company's new business plan and corporate strategy:
As announced on July 11th, CIS.com will transition from an e-commerce business to a strategic minerals acquisition and development company. CISI will initiate this strategy with the acquisition of 100% of Sovereign Resources, Inc. ("Sovereign"), a privately-owned company that is presently negotiating to acquire several large gold and copper deposits located in the United States and Canada.
The new business intends to acquire, explore and develop precious and base metal deposits with the potential to host "world class" ore reserves (greater than 1,000,000 ounces of gold or one billion pounds of copper). CISI / Sovereign believe that the acquisition and exploration / discovery phases offer investors the greatest potential for significant capital appreciation.
Because of their extreme rarity (for example, less than one percent of all gold deposits ever discovered contain more than one million ounces), companies owning such large copper and gold deposits are actively sought by investors, and also become takeover targets for the world's largest mining companies.
Globally, the major mining companies continue to produce gold and copper at rates far in excess of their ability to replenish ore reserves. The recent period of low metals prices has forced the major companies to reduce or eliminate their internal exploration programs. Increasingly, these same companies are relying more and more on buying ore reserves in the marketplace from smaller exploration companies (like CISI / Sovereign) that have made significant acquisitions and discoveries.
CISI / Sovereign believe that the current market conditions offer a once-in-a-decade opportunity to acquire mineral deposits with world-class ore reserves and resources at a fraction of their actual value. Each of the acquisitions to be made by CISI / Sovereign will have the following characteristics:
(1) Significant ore reserves / resources have already been established through drilling and assaying by major international mining companies;
(2) Opportunities exist to acquire the entire mining district; and,
(3) Available data suggests that each deposit could be economically developed at current metal prices (US$265 gold / US$0.70 copper).
Sovereign Resources has identified, and, is negotiating to acquire (at tremendous discounts to their intrinsic values), several copper and gold projects meeting this list of characteristics.
Each of Sovereign's properties will be explored with a tightly-focused, cost-effective program designed to significantly increase the known reserves. Based on successful exploration results, the Company intends to joint venture or sell its projects to major mining companies. Proceeds from the sale / joint venture of assets will either be distributed to shareholders in the form of dividends, and / or re-invested in other mineral projects.
CISI / Sovereign believe that the acquisition and exploration / discovery phases offer investors the greatest potential for significant capital appreciation.
Investors with questions or comments regarding the CISI's new business strategy are invited to contact Sovereign Resources by e-mail: SovereignResourcesUSA@yahoo.com
Update on the Sovereign Resources, Inc. Acquisition
CIS.com is pleased to report that it is performing its due diligence of Sovereign Resources, Inc., and anticipates completing this acquisition within the next thirty days.
ON BEHALF OF THE BOARD Harold Stock
This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in the proceeding discussion, the words "plan", "confident that", "believe", "expect", or "intend to" and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, market conditions, the availability of components for, and delays in the start of production, general acceptance of the company's products and technologies, competitive factors, the ability to successfully complete additional financing and other risks described in the company's SEC reports and filings.
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CONTACT: CIS.com Inc., Miami
Harold Stock, 305/438-0020
email: cisi_info@yahoo.com
KEYWORD: FLORIDA
INDUSTRY KEYWORD: E-COMMERCE MINING/METALS MERGERS/ACQ
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