GREAT WEST GOLD, INC. - RESTRUCTURING OF COMPANY Company outlines the salient points of its restructure
NEW YORK, NY, September 27, 2006, Great West Gold, Inc. (OTC Pink Sheets: GWGO) confirms as per its announcement dated September 8, 2006, that the Company has conducted an intensive review of its business plan and its operations. This is in response to the consistently low stock price which values the Company at a massive discount to its underlying value. Management cannot and will no longer, continue to allow stockholder value to suffer due to the non performance of the Company's stock price. These drastic changes are being brought about due to the consistent lack of performance in the Company's stock price.
This Announcement is being kept very brief, but the Company will be issuing detailed announcements on each of the corporate actions as outlined below, over the next few days. These corporate actions are designed to immediately "unlock" significant value for the stockholders and to hopefully, eliminate the massive discount between the Company's Stock Price and its Net Asset Value per share of Common Stock.
Great West Gold, Inc. :-
* To Acquire "Bonanza", "Storm Cloud", ""Starlight", "Venezia", "Federal", "Buffalo Lime Cap", "Red Cloud", "Storm King" and "Gladstone Lookout" Gold Mining Projects. * To Acquire "Swansea", "Tip Top" and "Mineral Mountain" Copper Mining Projects * To distribute stock to its stockholders in the remaining six Mining Holding Companies * To dispose of all of its Mining Interests to three quoted OTC Pink Sheet Companies through Reverse Mergers. Will result in the creation of two new quoted Gold Mining Companies and one quoted Copper Mining Company. * To distribute all of its Mining Assets to its stockholders, the Mining Assets will all be held in the three new OTC Pink Sheet Mining Companies * To make a significant acquisition in another Industry Sector and to exit the Mining Sector in the next three months
Other Corporate Actions :-
* St James Capital Holdings, Inc. acquires all outstanding Loan and Promissory Notes held against Great West Gold, Inc. from various third parties * Considering a "Stock Buyback" Programme with a third party Investment Group. The Investment Group has commenced their stock buy back, with the acquisition to date, of 550 million shares of the Company's Common Stock, all purchased of which was purchased in and during this week * Will definitely be appointing an Auditor to bring the outstanding Filings up to date * Will definitely be making an application to return to the OTC BB Market
The Management of the Company has decided that stockholder interests are not being served by any further acquisitions in the Mining Sector and that the Company's existing Mining Projects require immediate further exploration with a view to eventual production. To this end, three of the Company's most valuable Gold Projects will commence further exploration work without delay. The Company completed these additional acquisitions as announced today, solely for the purpose of significantly enhancing the value of these three new quoted Mining Companies. Management of the Company has recognized that true value can only be created for its stockholders through this "break up" and distribution of the Company's Mining assets; and to leave the Management of these Mining Assets in focused and more experienced hands. Stockholders will be better served by announcements of the Mining Exploration Results instead of further Corporate actions and more acquisitions in the Mining Sector.
The Company's assets are being split into three separate quoted Companies through Reverse Mergers with existing quoted Companies on the OTC Pink Sheet Market, two of these Companies will focus on Gold and one of these Company's will focus on Copper.
Great West Gold, Inc. will hold a significant stake in each of these three quoted Mining Companies, these interests to be held in Western Diversified Mining Resources plc, a wholly owned subsidiary company of Great West Gold, Inc.
Great West Gold, Inc. will not be involved in the day to day operations of these three Companies as they will be managed by independent Management.
Great West Gold, Inc. will be announcing the "Record Dates" and "Pay Dates" next week for the last six Stock Dividend distributions.
Great West Gold, Inc. will, through Western Diversified Mining Resources plc, own stakes in these three companies. Great West Gold, Inc. intends to make a substantial acquisition in another Industry Sector, which upon completion, will result in change in the Company's Name and Trading Symbol. At this time, Great West Gold's remaining stockholding in these three Mining Companies will be distributed entirely, to Great West Gold, Inc. stockholders and Great West Gold, Inc. will exit the Mining Sector.
The allocation of the outstanding Stock Dividends in respect of Bouse Mining Holdings plc, Ambassador Gold Holdings plc, Sentinel Resource Holdings plc, Copperstone Mining Holdings plc and Golden Eagle Mining Holdings plc are ongoing, as promised. The Company expects these to be completed shortly. Computershare Trust Company, Inc. has been appointed as Transfer Agent to these Companies. These shares are being held "on book" by the Transfer Agent to these Companies. The Transfer Agent will advise shareholders in writing as to the shares held "on book" on their behalf by the Transfer Agent.
Stockholders will be advised shortly, as to the detailed descriptions of each of Mining Projects owned by the Company, the Exploration plans for various Mining Projects and their approximate valuations. At this time, the main exploration work will be focused on the "Mockingbird", "Bouse" and "Bonanza" Gold Mining Projects as they are the most valuable Projects in the Company's portfolio.
The Corporate web site will be updated this weekend to reflect all of these Corporate actions, and in great detail.
About Great West Gold, Inc.
Great West Gold, Inc., www.greatwestgold.com, a gold mining exploration stage company, engaged in the acquisition and exploration of mining properties in the United States. The Company has Gold assets through its holdings in "Bouse", "Mockingbird", "Ambassador", "Yaba", "Golden Eagle", "Bonanza", "Storm Cloud", ""Starlight", "Venezia", "Federal", "Buffalo Lime Cap", "Red Cloud", "Storm King", "South Copperstone" and "Gladstone Lookout" Gold Mining Projects. The Company's Copper assets are "Copper Mountain", "Swansea", "Tip Top" and "Mineral Mountain". The Company holds five of these Mining Assets through its 48% holding in Bouse Mining Holdings plc, Copperstone Mining Holdings plc, Ambassador Gold Holdings plc, Golden Eagle Mining Holdings plc and in Sentinel Resource Holdings plc. The other are 100% controlled by the Company but 42% of each of these Companies are being distributed to Great West Gold, Inc. stockholders shortly.
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a companies' annual report on Form 10-K or 10-KSB and other filings made by such company with the SEC.
Great West Gold, Inc.
Tel : + 44 845 127 4051
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