Some questions have arisen about our disclosure statement. The following section in particular:
The Company does not operate, or own, or have the present intention to operate or own a mine, plant or other significant property for carrying out its business plan for mining operations.
A number of individuals have singled out this section and have read into it that Drake Gold Resources has no intention of developing its projects. This could not be further from the truth. The above portion of the disclosure statement simply points out that the company will be leasing land and then will make arrangements for mining, most likely contracting the work or aspects of it. This is simply a legal clarification of the nature of how this undertaking will be structured so that there is not a misunderstanding when statements are made referring to projects, i.e. our project does not mean we own the land only or that we have a right to the minerals extracted from it. We do not want to give the impression that the company owns the land, even if it does have the right to earn revenues from it. This is done mostly so that no one believes we could profit from the sale of these lands but only the leases.
We also wanted to point out that as of November, Chairman and Director Clayton Smith has not been involved with any other businesses other than that of Drake Gold Resources. He has not been involved in any of the research required for Clayton’s Corner or any of the other newsletters other than those related to Drake Gold Resources. The continuation of any newsletters outside those related to DKGR is performed with the assistance of others for the sake of the subscriber base and its maintenance.
We also want to give our best to John Cerenzia as he has left the company for personal reasons. He has done an exemplary job in his contributions to DKGR and has given us a great deal of value. This has been in the form of both expertise and wisdom that we carry forward into all of our present and future dealings.
Wednesday, December 5, 2007
Tuesday, December 4, 2007
Drake Gold Resources Announces Significant Gold Discoveries in Georgia
We see the Richard Claus estimates as our conservative baseline. He limited the samples to a bit over 44 acres and gave us figures that were not only encouraging but a starting point from which we could provide a rationale for moving forward. We look at the amount of gold Claus estimates and we can translate 1.3 grams to approximately .05 ounces. When the minimum per ton target for profitability is .01 ounces the decision becomes clear. Moving forward when we have a project that is projected to be 500% more productive than the minimum is still a very good idea.
We expect though the truth lies somewhere north of the 1.3 grams. Not that we couldn't be more than successful with recovering 54,000 ounces from the initial 44 acres but we are aiming higher. With our Gault Group samples as well as internal samples taken by our geologist Dr. McLemore coming in at between 10 and 15 grams per ton, we would come in a bit conservative with our high-end projections aiming at the 10 gram/540,000 ounces it would yield.
These numbers provide clarity to the decisions we have made so far. The decisions Drake Gold Resources has made are based on our in-house regional expertise. Both our local prospector and former Georgia State Geologist bring extensive knowledge and connections to the table. We have built this knowledge base, with deep ties in the area, so that we could ensure that we could side step complications. Our assets on the ground in the Southeastern United States hold in common with our shareholders an interest in maximizing the profitability of these projects. With the help of both Jan Yarrington and William McLemore PhD, Drake Gold Resources is moving forward with a project that has valuable implications for all of our shareholders.
We expect though the truth lies somewhere north of the 1.3 grams. Not that we couldn't be more than successful with recovering 54,000 ounces from the initial 44 acres but we are aiming higher. With our Gault Group samples as well as internal samples taken by our geologist Dr. McLemore coming in at between 10 and 15 grams per ton, we would come in a bit conservative with our high-end projections aiming at the 10 gram/540,000 ounces it would yield.
These numbers provide clarity to the decisions we have made so far. The decisions Drake Gold Resources has made are based on our in-house regional expertise. Both our local prospector and former Georgia State Geologist bring extensive knowledge and connections to the table. We have built this knowledge base, with deep ties in the area, so that we could ensure that we could side step complications. Our assets on the ground in the Southeastern United States hold in common with our shareholders an interest in maximizing the profitability of these projects. With the help of both Jan Yarrington and William McLemore PhD, Drake Gold Resources is moving forward with a project that has valuable implications for all of our shareholders.
Wednesday, November 28, 2007
Drake Gold Resources, Inc. Releases Comprehensive Corporate Development Strategy
Under the corporate model developed by Drake Gold Resources and its consultants the company has chosen to seek only internal financing by insiders. This financing has been contingent upon repayment from cash flows and not based on diluting the value of Drake with stock issuances. The dedication to this model can be seen in that the company has issued no free trading stock for the repayment of debt. Indeed there has been a stock buyback and cancellation of 70 million authorized shares personally funded by Drake Gold Resources Chairman and Director Clayton Smith. The share cancellation and buyback was achieved through a transaction that will result in no cost to Drake. The shares were acquired by Clayton Smith with personal assets so that the transaction would result in no expense to Drake Gold Resources in debt or future consideration.
Reflecting on this Mr. Smith stated, "I did what I thought was best as a shareholder, not as an insider looking to maximize for only personal benefit. As an investor I wanted to maximize the value of the shares that are held by myself and in turn all of Drake shareholders. I did this by canceling the shares rather than acquiring them for myself. The exchange for the shares was based on a negotiation with a group of shareholders in which I offered equity in another company to them for their shares. The equity came at a substantial cost to me but I found that by just canceling the shares I am building more value for myself as well. This was entirely an off book transaction for Drake. There has been no added debt or issuance of any common or preferred shares to support this transaction. The equity I traded was completely unrelated to Drake but the benefit is clear."
Reflecting on this Mr. Smith stated, "I did what I thought was best as a shareholder, not as an insider looking to maximize for only personal benefit. As an investor I wanted to maximize the value of the shares that are held by myself and in turn all of Drake shareholders. I did this by canceling the shares rather than acquiring them for myself. The exchange for the shares was based on a negotiation with a group of shareholders in which I offered equity in another company to them for their shares. The equity came at a substantial cost to me but I found that by just canceling the shares I am building more value for myself as well. This was entirely an off book transaction for Drake. There has been no added debt or issuance of any common or preferred shares to support this transaction. The equity I traded was completely unrelated to Drake but the benefit is clear."
Tuesday, November 27, 2007
Drake Gold Resources Inc. - Announces Decrease of Both Authorized and Outstanding Shares
Monday's press release announces a stock buyback and cancellation that was made possible with personal assets held by Chairman and Director Clayton Smith. With the use of his personal assets, Mr. Smith was able to negotiate the company's purchase of shares held by individuals who came by these shares as part of a deal with the previous corporate entity. This stands in stark contrast to other companies trading over the counter that often have little control of large blocks of stock and in turn see short price per share growth punctuated by long-term diminished value.
With the completion of the buyback of 70 million shares we have shown that we share the same perspective as that of our investors (because we are investors,) we want share price to continually improve over the long-term. As opposed to many other small companies that issue stock that diminishes value. Unfortunately they do this in an effort to make short-term gain at the expense of those who take a long-term position in these companies. These companies often point at phantom naked short sellers when the reality is that they have issued huge blocks of stock to promoters. These promoters in turn sell into a market populated with those who fall prey to these thin promotional tactics that are preformed many times to falsely inflate prices so these promoters can sell their holdings. Companies and their investors both become victims of the tactic. By sidestepping the need to exchange stock for promotional services provided by third parties who have none but the shortest term interests, we have eliminated much of the downward pressure that can brutalize share price.
We have done this not for some altruistic impulse but as part of a strategy that will provide both cash flow and higher share price for the company and its biggest shareholders. The largest of which is the company's chairmen Clayton Smith who went on to state. "I have put up my own assets to secure these shares as the culmination of a desire to build a lasting organization that can pay its principles and be a great long-term investment. I take great pride in what we have done in securing all non-friendly blocks of shares, devising a long-term strategy and securing a slate of projects that we believe will create a long lasting business that is unparalleled."
With the completion of the buyback of 70 million shares we have shown that we share the same perspective as that of our investors (because we are investors,) we want share price to continually improve over the long-term. As opposed to many other small companies that issue stock that diminishes value. Unfortunately they do this in an effort to make short-term gain at the expense of those who take a long-term position in these companies. These companies often point at phantom naked short sellers when the reality is that they have issued huge blocks of stock to promoters. These promoters in turn sell into a market populated with those who fall prey to these thin promotional tactics that are preformed many times to falsely inflate prices so these promoters can sell their holdings. Companies and their investors both become victims of the tactic. By sidestepping the need to exchange stock for promotional services provided by third parties who have none but the shortest term interests, we have eliminated much of the downward pressure that can brutalize share price.
We have done this not for some altruistic impulse but as part of a strategy that will provide both cash flow and higher share price for the company and its biggest shareholders. The largest of which is the company's chairmen Clayton Smith who went on to state. "I have put up my own assets to secure these shares as the culmination of a desire to build a lasting organization that can pay its principles and be a great long-term investment. I take great pride in what we have done in securing all non-friendly blocks of shares, devising a long-term strategy and securing a slate of projects that we believe will create a long lasting business that is unparalleled."
Tuesday, November 20, 2007
Drake Gold Resources Inc. - Information
Drake Gold Resources has been working towards a set of goals laid out in a number of documents that have been developed over the past year. These include its executive summary and financial compliance formula. We have done this for the express purpose of showing our investors that we are committed to accountability and moving beyond the status quo. All too often companies are reluctant to disclose benchmarks and goals for fear of falling short. We believe that if we share our ambitions we can take credit for our achievements as well as responsibility in tougher times.
Through hard work and tenacity we feel that the accomplishments will be many while the challenges will only be the means by which we attain these successes. Of course the many goals we have set for Drake Gold Resources rest upon the solid fiscal foundation created by management and attested to in the financials, as vetted by CFO Thomas Conar.
In regard to the updating of information Mr. Conar stated, "The process of obtaining the new status on Pink Sheets is a wonderful addition that I think all companies should be required to go through. The combination of legal and financial transparency is woefully lacking in most Pink Sheet companies." As well as, "The timely completion of this could not have been done without the assistance of a member of the prior management. I want to thank Jerry Leslie for his time and effort in providing a seamless and accurate transition from the prior company."
Through hard work and tenacity we feel that the accomplishments will be many while the challenges will only be the means by which we attain these successes. Of course the many goals we have set for Drake Gold Resources rest upon the solid fiscal foundation created by management and attested to in the financials, as vetted by CFO Thomas Conar.
In regard to the updating of information Mr. Conar stated, "The process of obtaining the new status on Pink Sheets is a wonderful addition that I think all companies should be required to go through. The combination of legal and financial transparency is woefully lacking in most Pink Sheet companies." As well as, "The timely completion of this could not have been done without the assistance of a member of the prior management. I want to thank Jerry Leslie for his time and effort in providing a seamless and accurate transition from the prior company."
Monday, October 1, 2007
Drake Gold Resources Inc. - Interview
Drake Gold - Investor Relations: Hello and thanks for taking the time to join me today and review the first interview of many that we will bring to the investment community and shareholders of Drake Gold Resources Inc. My name is Zoran Minic and I am the main Investor Relations Contact and am joined today by the Chairman of the Board, Mr. Clayton Smith.
Drake Gold - Investor Relations: I have just recently come on as the IR after being a shareholder myself for over a year and being able to watch the company develop. I currently am under contract and get paid 144 restricted shares, which are restricted for two years from issue.
Drake Gold - Investor Relations: Today we have a series of questions relating to what is currently on investor minds and what is in need of addressing as the company excels to the next level.
Drake Gold - Investor Relations: Chairman?
Drake Gold Resources Inc. - Chairman: Hello Zoran and thank you for arranging this interview. I am pleased to be able to provide the investment audience and our shareholders with updates. Also want to be sure to inform readers that we will provide interviews on a regular basis and will also allow for open forum questions with investors who would like to join a chat in the future.
Drake Gold - Investor Relations: My pleasure – let’s go ahead and get directly into some of the pressing questions.
Drake Gold - Investor Relations: The main thing investors want to know about is the concern with the rating system through Pink Sheets and the lack of an available quote. Can you inform us what the reasoning behind this was and what is being done to resolve the problem?
Drake Gold Resources Inc. - Chairman: It is of course our first order of business as we move into the fourth quarter. First off the issue was created due to Pink Sheets allegedly claiming they received spam or promotion material about the company that triggered them to remove our available quote. There was absolutely no basis for them to do this as the company, nor did anyone affiliated with the company, have anything to do with this allegation.
Drake Gold Resources Inc. - Chairman: After conversations with contacts at Pink Sheets they informed us that whether we did or did not have anything to do with it they are now requesting further steps to be made to offer more transparency to the investors. We understood their point of view and have agreed to comply in an effort to becoming fully disclosed and reporting.
Drake Gold Resources Inc. - Chairman: This involves a comprehensive "Initial Company Information and Disclosure Statement" with attached financials. What this effectively does is provide the public with full and accurate information about the company, its structure, its plans and financial information.
Drake Gold Resources Inc. - Chairman: At this time we are working long hours to be able to fulfill this requirement as we understand the rating we have received via the Pink Sheets website. We are excited to be able to do so as it will move DKGR to the next level of investor confidence as we roll out the business model and plans. We will be making official announcements via the Press, website, and newsletter soon as we have made these accomplishments. The public will be able to expect to see this information posted to www.pinksheets.com under our ticker within the next two weeks.
Drake Gold - Investor Relations: Well I must say as an investor myself I am very excited to see this accomplished Mr. Smith and I think I can speak on behalf of most shareholders and say that we are all thankful that this will be completed soon.
Drake Gold - Investor Relations: Mr. Chairman will becoming a fully disclosed Pink Sheet set the stage to move to a senior exchange in the foreseeable future?
Drake Gold Resources Inc. - Chairman: I would like to answer this in two parts. The easy answer is, yes, we will be seeking senior listing as the company begins to develop but we are going to avoid issues of raising expectations regarding time frames and would rather release information as we accomplish certain steps. The progression without time frames will occur like this: 1-Complete and release the Disclosure Statement and Financials 2-Submit for listing with the PrimeQX 3-Complete necessary audits to post audited financials by a PCAOB firm. Becoming a "Fully Reporting" Pink Sheet will be our near-term objective to be able to file for acceptance to the OTCBB.
Drake Gold - Investor Relations: Well its appreciated that the company is looking at the future with aggressive plans but is avoiding pitfalls of setting false expectations and timeframes. I know investors are excited about upcoming press announcements as well as hearing any updates regarding the Oil and Gas Spin-off as discussed in previous PR's. Can you give us an idea of what to expect via PR regarding the promised Spin Off?
Drake Gold Resources Inc. - Chairman: We realize we have had some problems in the past meeting timeframes and commitments and want the investors to know this will not be an ongoing issue for us. We have brought together a strong team of professionals that will be posted to our website some time this week. It is this expertise that will guide the corporate team to the next level including upcoming press announcements that will be of value to the investment community.
Drake Gold Resources Inc. - Chairman: We are encouraged to be able to say with this solid team now in place we will be able to help the investors better see the future of this company and how we intend to accomplish our goals. We will be discussing our financing strategies and lack of any need to dilute the company through an innovative plan set for release in the next couple weeks.
Drake Gold Resources Inc. - Chairman: The Spin-Off is the basis for our plans to move forward. Drake Gold will be able to build value in the Drake Oil and Gas subsidiary, raise capital, and acquire projects without having to dilute DKGR. We will be focused on acquiring existing infrastructure, proven and turnkey projects both for Drake Oil and Gas and its parent. For us to complete the dividend as promised we want to be able to present to our investors projects we are planning to acquire and complete steps of this process to build value in the company prior to finishing the dividend. At this time we have taken a series of steps toward this end and will have updates to the market, as they are made available.
Drake Gold - Investor Relations: Well it sounds like there is a definite plan in place on how to increase shareholder value and you started to answer my next questions about the Company's financing plans and if the market will see dilution to bring this value to the table, can you elaborate regarding your plans?
Drake Gold Resources Inc. - Chairman: Absolutely. It is very important for the business strategy and to increase bottom-line balance sheet growth to be able to minimize dilution, which would only hurt the market capitalization if mismanaged. We will be detailing a plan in upcoming releases and in our soon-to-be-released business plan, which will show a clear and precise formula to stop any form of dilution. We have yet to issue a single free trading share since Drake's inception in 2006 and don't ever plan to use our float to raise capital for the company. The float has had little changes since we have taken over the company. Our model will be using our subsidiaries through public offerings or interest holdings in other public companies and to leverage ourselves with joint venture capital partners.
Drake Gold - Investor Relations: This plan if executed properly could lead to continued growth of Drake's financials and ultimately shareholder value which is what we all want to here. A lot of questions have arisen regarding the Company's current plans for operations and in particular regarding the Jackpot Placer Project, which a recent mining report was released on its current potential, can you fill us in?
Drake Gold Resources Inc. - Chairman: After a series of false expectations last year from our progression on the placer project we had to contact an outside party to conduct independent review and investigation of the real potential of the JPP. The report, although inconclusive, did reveal a lot of information. Gold content was not what was expected and would ultimately take bulk sampling to be able to really determine how much gold is there as well as potential for silver and copper. We have made counter offers to our lease and will continue discussions to see if we can arrange a time frame to bulk sample before spending more money on advance royalties. In the mean time we are extremely pleased with our initial review of our Georgia prospects through our joint venture with Southern Mining and Exploration.
Drake Gold Resources Inc. - Chairman: SME is a company I am a controlling interest holder in. We are using it to properly sample and provide assays for actual gold potential. We are also using it as an operating company in Georgia that will secure all the rights to the land and properties of interest. We will follow closely our executive mining summary, which calls for using the proper formula to sample and determine if projects are viable gold prospects. We are making the promise to our investors to deliver results to the public before making any claims to actual potential. To this end we have already performed a series of sampling and on-site work, which will be summarized with upcoming assay reports made available very soon.
Drake Gold - Investor Relations: In today's day and age we all realize that commodities, and especially gold and oil, are very hot investments backed by record breaking highs in prices. What sets this company apart from other potential gold investments? Other then oil, does Drake Gold Resources intend to diversify into other resource fields such as copper, silver or uranium?
Drake Gold Resources Inc. - Chairman: The great thing about being an emerging issuer is the potential for growth is so great. Due to the value of growing commodity prices we plan to fully capitalize on this opportunity. The game plan we are using is advancing different Drake-managed projects and companies to open many doors in the way of new opportunities. Oil and gas, gold, silver, copper and yes even uranium could be ideal directions for Drake to focus its energies. There really is no limit to where Drake can focus its balance sheet building exercises with the ability to avoid dilution and raise the needed capital through our subsidiary interests. All of our plans will be strictly reviewed for potential and accuracy as we bring them to market.
Drake Gold - Investor Relations: Well Mr. Chairman I am really glad we had time to discuss the current plans and expectations with you today. I look forward to doing our next interview supported by upcoming announcements and value expanding plans. We are going to begin to address many investor inquiries via written interviews so that all current events will be properly communicated. We will also be setting up live question-and-answer forums that we will invite investors to join us in. Please feel free to email us at info@drakegold.com or contact us directly to get your questions answered. We encourage everyone to sign up for our newsletter for the most up-to-date information. Thanks in advance for your considerations.
Drake Gold - Investor Relations: I have just recently come on as the IR after being a shareholder myself for over a year and being able to watch the company develop. I currently am under contract and get paid 144 restricted shares, which are restricted for two years from issue.
Drake Gold - Investor Relations: Today we have a series of questions relating to what is currently on investor minds and what is in need of addressing as the company excels to the next level.
Drake Gold - Investor Relations: Chairman?
Drake Gold Resources Inc. - Chairman: Hello Zoran and thank you for arranging this interview. I am pleased to be able to provide the investment audience and our shareholders with updates. Also want to be sure to inform readers that we will provide interviews on a regular basis and will also allow for open forum questions with investors who would like to join a chat in the future.
Drake Gold - Investor Relations: My pleasure – let’s go ahead and get directly into some of the pressing questions.
Drake Gold - Investor Relations: The main thing investors want to know about is the concern with the rating system through Pink Sheets and the lack of an available quote. Can you inform us what the reasoning behind this was and what is being done to resolve the problem?
Drake Gold Resources Inc. - Chairman: It is of course our first order of business as we move into the fourth quarter. First off the issue was created due to Pink Sheets allegedly claiming they received spam or promotion material about the company that triggered them to remove our available quote. There was absolutely no basis for them to do this as the company, nor did anyone affiliated with the company, have anything to do with this allegation.
Drake Gold Resources Inc. - Chairman: After conversations with contacts at Pink Sheets they informed us that whether we did or did not have anything to do with it they are now requesting further steps to be made to offer more transparency to the investors. We understood their point of view and have agreed to comply in an effort to becoming fully disclosed and reporting.
Drake Gold Resources Inc. - Chairman: This involves a comprehensive "Initial Company Information and Disclosure Statement" with attached financials. What this effectively does is provide the public with full and accurate information about the company, its structure, its plans and financial information.
Drake Gold Resources Inc. - Chairman: At this time we are working long hours to be able to fulfill this requirement as we understand the rating we have received via the Pink Sheets website. We are excited to be able to do so as it will move DKGR to the next level of investor confidence as we roll out the business model and plans. We will be making official announcements via the Press, website, and newsletter soon as we have made these accomplishments. The public will be able to expect to see this information posted to www.pinksheets.com under our ticker within the next two weeks.
Drake Gold - Investor Relations: Well I must say as an investor myself I am very excited to see this accomplished Mr. Smith and I think I can speak on behalf of most shareholders and say that we are all thankful that this will be completed soon.
Drake Gold - Investor Relations: Mr. Chairman will becoming a fully disclosed Pink Sheet set the stage to move to a senior exchange in the foreseeable future?
Drake Gold Resources Inc. - Chairman: I would like to answer this in two parts. The easy answer is, yes, we will be seeking senior listing as the company begins to develop but we are going to avoid issues of raising expectations regarding time frames and would rather release information as we accomplish certain steps. The progression without time frames will occur like this: 1-Complete and release the Disclosure Statement and Financials 2-Submit for listing with the PrimeQX 3-Complete necessary audits to post audited financials by a PCAOB firm. Becoming a "Fully Reporting" Pink Sheet will be our near-term objective to be able to file for acceptance to the OTCBB.
Drake Gold - Investor Relations: Well its appreciated that the company is looking at the future with aggressive plans but is avoiding pitfalls of setting false expectations and timeframes. I know investors are excited about upcoming press announcements as well as hearing any updates regarding the Oil and Gas Spin-off as discussed in previous PR's. Can you give us an idea of what to expect via PR regarding the promised Spin Off?
Drake Gold Resources Inc. - Chairman: We realize we have had some problems in the past meeting timeframes and commitments and want the investors to know this will not be an ongoing issue for us. We have brought together a strong team of professionals that will be posted to our website some time this week. It is this expertise that will guide the corporate team to the next level including upcoming press announcements that will be of value to the investment community.
Drake Gold Resources Inc. - Chairman: We are encouraged to be able to say with this solid team now in place we will be able to help the investors better see the future of this company and how we intend to accomplish our goals. We will be discussing our financing strategies and lack of any need to dilute the company through an innovative plan set for release in the next couple weeks.
Drake Gold Resources Inc. - Chairman: The Spin-Off is the basis for our plans to move forward. Drake Gold will be able to build value in the Drake Oil and Gas subsidiary, raise capital, and acquire projects without having to dilute DKGR. We will be focused on acquiring existing infrastructure, proven and turnkey projects both for Drake Oil and Gas and its parent. For us to complete the dividend as promised we want to be able to present to our investors projects we are planning to acquire and complete steps of this process to build value in the company prior to finishing the dividend. At this time we have taken a series of steps toward this end and will have updates to the market, as they are made available.
Drake Gold - Investor Relations: Well it sounds like there is a definite plan in place on how to increase shareholder value and you started to answer my next questions about the Company's financing plans and if the market will see dilution to bring this value to the table, can you elaborate regarding your plans?
Drake Gold Resources Inc. - Chairman: Absolutely. It is very important for the business strategy and to increase bottom-line balance sheet growth to be able to minimize dilution, which would only hurt the market capitalization if mismanaged. We will be detailing a plan in upcoming releases and in our soon-to-be-released business plan, which will show a clear and precise formula to stop any form of dilution. We have yet to issue a single free trading share since Drake's inception in 2006 and don't ever plan to use our float to raise capital for the company. The float has had little changes since we have taken over the company. Our model will be using our subsidiaries through public offerings or interest holdings in other public companies and to leverage ourselves with joint venture capital partners.
Drake Gold - Investor Relations: This plan if executed properly could lead to continued growth of Drake's financials and ultimately shareholder value which is what we all want to here. A lot of questions have arisen regarding the Company's current plans for operations and in particular regarding the Jackpot Placer Project, which a recent mining report was released on its current potential, can you fill us in?
Drake Gold Resources Inc. - Chairman: After a series of false expectations last year from our progression on the placer project we had to contact an outside party to conduct independent review and investigation of the real potential of the JPP. The report, although inconclusive, did reveal a lot of information. Gold content was not what was expected and would ultimately take bulk sampling to be able to really determine how much gold is there as well as potential for silver and copper. We have made counter offers to our lease and will continue discussions to see if we can arrange a time frame to bulk sample before spending more money on advance royalties. In the mean time we are extremely pleased with our initial review of our Georgia prospects through our joint venture with Southern Mining and Exploration.
Drake Gold Resources Inc. - Chairman: SME is a company I am a controlling interest holder in. We are using it to properly sample and provide assays for actual gold potential. We are also using it as an operating company in Georgia that will secure all the rights to the land and properties of interest. We will follow closely our executive mining summary, which calls for using the proper formula to sample and determine if projects are viable gold prospects. We are making the promise to our investors to deliver results to the public before making any claims to actual potential. To this end we have already performed a series of sampling and on-site work, which will be summarized with upcoming assay reports made available very soon.
Drake Gold - Investor Relations: In today's day and age we all realize that commodities, and especially gold and oil, are very hot investments backed by record breaking highs in prices. What sets this company apart from other potential gold investments? Other then oil, does Drake Gold Resources intend to diversify into other resource fields such as copper, silver or uranium?
Drake Gold Resources Inc. - Chairman: The great thing about being an emerging issuer is the potential for growth is so great. Due to the value of growing commodity prices we plan to fully capitalize on this opportunity. The game plan we are using is advancing different Drake-managed projects and companies to open many doors in the way of new opportunities. Oil and gas, gold, silver, copper and yes even uranium could be ideal directions for Drake to focus its energies. There really is no limit to where Drake can focus its balance sheet building exercises with the ability to avoid dilution and raise the needed capital through our subsidiary interests. All of our plans will be strictly reviewed for potential and accuracy as we bring them to market.
Drake Gold - Investor Relations: Well Mr. Chairman I am really glad we had time to discuss the current plans and expectations with you today. I look forward to doing our next interview supported by upcoming announcements and value expanding plans. We are going to begin to address many investor inquiries via written interviews so that all current events will be properly communicated. We will also be setting up live question-and-answer forums that we will invite investors to join us in. Please feel free to email us at info@drakegold.com or contact us directly to get your questions answered. We encourage everyone to sign up for our newsletter for the most up-to-date information. Thanks in advance for your considerations.
Friday, August 31, 2007
DKGR Management Forum: Corporate Accounting Update
Today we were able to make great strides toward becoming a fully transparent and compliant company. As mentioned in previous updates both in press releases and management forums we have detailed our plan to eventually list OTCBB. Discussions today between company management and a Pink Sheets LLC (www.Pinksheets.com) representative, Chris Grant has set in motion the steps needed to bring us up to date over the course of the next month. We now have a complete overview of all Pinksheet guidelines that will restore our quote on their website. This will help us move up the ladder to becoming a "current information provider," as defined by Pinksheets LLC on their website (http://www.pinksheets.com/pink/otcguide/categories.jsp.)
In addition to initiating dialog with their representative and getting a complete review, we have also completed phase one by bringing all corporate details current including minutes and accounting ledgers. The next step is to submit the Pinksheet Disclosure Statement and all of our financials, which will bring us up to date with the quotation service. At this point we will meet the requirements for listing PrimeQX, which is our preliminary step toward listing on the NASDAQ's OTCBB. Updates will be made as these steps are completed. We also anticipate the release of a number of exciting developments regarding current and new projects as they meet the conditions as laid out in the company's executive mining summary.
In addition to initiating dialog with their representative and getting a complete review, we have also completed phase one by bringing all corporate details current including minutes and accounting ledgers. The next step is to submit the Pinksheet Disclosure Statement and all of our financials, which will bring us up to date with the quotation service. At this point we will meet the requirements for listing PrimeQX, which is our preliminary step toward listing on the NASDAQ's OTCBB. Updates will be made as these steps are completed. We also anticipate the release of a number of exciting developments regarding current and new projects as they meet the conditions as laid out in the company's executive mining summary.
Tuesday, August 21, 2007
Drake Gold Resources: Building The Southern Mining Exploration Joint Venture
The Southern Mining Exploration (SME) Joint Venture comes at the outset of an exciting time for Drake Gold. With an eye toward good corporate governance, we have faced this year of strategic challenges with confidence. Confident because of the opportunities we have uncovered in a process we are continually working to make more transparent. With this in mind I wanted to spend some time explaining a bit about this joint venture and how it came to be.
At the end of 2006, a prospector named Jan Yarrington met with me and discussed what he considered to be a gold strike zone in Georgia. He made a variety of suggestions on how we could prove up resources and what it would take to turn the prospect into a producer. Naturally I suggested using Drake Gold as the catalyst to bring the project to market and fund via DKGR's infrastructure.
At first Jan and his associates, who would form the core of SME, were very hesitant to get involved with a public company because of disclosure issues that run contrary to competitive concerns, coupled with the slow pace of going from sampling to production. Whether or not this was going to be the case with DKGR was moot, given the fact they had experienced these problems with other public companies in the past. As a result, they were not interested in being acquired or doing a joint venture with DKGR. In light of the impressive preliminary work performed by Mr. Yarrington, I suggested I join their nonpublic company as a way to address their reservations. After some personal investment from each of us into the private corporation and further exploration in the area, they became more comfortable with my participation and we all grew quite excited about the potential of the project. Gold in the area hadn't been mined heavily for over 100 years, but with new mining technologies and improved margins this would truly be a great opportunity.
Keeping in mind my main investment of both time and money has been in Drake Gold Resources, my ultimate goal was to eventually fold the project into DKGR. Again, the principals at SME didn't like the idea of working with a public company due to a bad experience in the past, coupled with the worry that given transparency issues, word would get out about the claim. They rightly feared an impending gold rush in our target areas making expansion in these areas of interest more expensive and of course less profitable.
Southern Mining and Exploration was originally incorporated in the state of Minnesota about eighteen years ago. I explained to the principals that in order to go into full operation in Georgia we would need to be able to do business in Georgia and that incorporation there would be key. Seeing as I had become the primary investor, I negotiated acquiring a percentage in the company in order to become an officer and director, giving my position in negotiations more weight. I then, with the assistance of company president John Marconette, moved to bring this opportunity closer to Drake Gold and the shareholder interests I represent there, while at the same time addressing the concerns of my business associates at SME.
Since Mr. Marconette had built a relationship with the other members of SME and because of his taking the lead in the negotiation process, we were able to be more hands on. With our CFO Thomas Conar located in Tennessee, we were able to have him make several trips to the site and participate in the sampling process. Mr. Conar's participation was integral in continuing to solidify the relationship between all interested parties at SME and the DKGR leadership.
The process leading to the Joint Venture agreement included deepening relationships between SME and DKGR leadership and an explanation of the advantages of being jointly ventured with a public company, due to increased availability of project funding. We were then able to convince the SME interests to move forward with a DKGR joint venture after rights had been secured on a number of properties. This way Drake Gold Resources would not have to issue any stock to SME. The agreement of 75% working interest for all costs created an opportunity for Drake shareholders while still satisfying the other principals at SME. I have had to agree to keep our location secret until full leasing and contracts have been completed as to avoid competitive conflicts. The arrangement has already proved to be well worth it.
I am excited to bring this opportunity to all shareholders of Drake Gold Resources.
The entire Drake Gold team thanks you for your support.
Clayton Smith, Director of Drake Gold Resources Inc.
At the end of 2006, a prospector named Jan Yarrington met with me and discussed what he considered to be a gold strike zone in Georgia. He made a variety of suggestions on how we could prove up resources and what it would take to turn the prospect into a producer. Naturally I suggested using Drake Gold as the catalyst to bring the project to market and fund via DKGR's infrastructure.
At first Jan and his associates, who would form the core of SME, were very hesitant to get involved with a public company because of disclosure issues that run contrary to competitive concerns, coupled with the slow pace of going from sampling to production. Whether or not this was going to be the case with DKGR was moot, given the fact they had experienced these problems with other public companies in the past. As a result, they were not interested in being acquired or doing a joint venture with DKGR. In light of the impressive preliminary work performed by Mr. Yarrington, I suggested I join their nonpublic company as a way to address their reservations. After some personal investment from each of us into the private corporation and further exploration in the area, they became more comfortable with my participation and we all grew quite excited about the potential of the project. Gold in the area hadn't been mined heavily for over 100 years, but with new mining technologies and improved margins this would truly be a great opportunity.
Keeping in mind my main investment of both time and money has been in Drake Gold Resources, my ultimate goal was to eventually fold the project into DKGR. Again, the principals at SME didn't like the idea of working with a public company due to a bad experience in the past, coupled with the worry that given transparency issues, word would get out about the claim. They rightly feared an impending gold rush in our target areas making expansion in these areas of interest more expensive and of course less profitable.
Southern Mining and Exploration was originally incorporated in the state of Minnesota about eighteen years ago. I explained to the principals that in order to go into full operation in Georgia we would need to be able to do business in Georgia and that incorporation there would be key. Seeing as I had become the primary investor, I negotiated acquiring a percentage in the company in order to become an officer and director, giving my position in negotiations more weight. I then, with the assistance of company president John Marconette, moved to bring this opportunity closer to Drake Gold and the shareholder interests I represent there, while at the same time addressing the concerns of my business associates at SME.
Since Mr. Marconette had built a relationship with the other members of SME and because of his taking the lead in the negotiation process, we were able to be more hands on. With our CFO Thomas Conar located in Tennessee, we were able to have him make several trips to the site and participate in the sampling process. Mr. Conar's participation was integral in continuing to solidify the relationship between all interested parties at SME and the DKGR leadership.
The process leading to the Joint Venture agreement included deepening relationships between SME and DKGR leadership and an explanation of the advantages of being jointly ventured with a public company, due to increased availability of project funding. We were then able to convince the SME interests to move forward with a DKGR joint venture after rights had been secured on a number of properties. This way Drake Gold Resources would not have to issue any stock to SME. The agreement of 75% working interest for all costs created an opportunity for Drake shareholders while still satisfying the other principals at SME. I have had to agree to keep our location secret until full leasing and contracts have been completed as to avoid competitive conflicts. The arrangement has already proved to be well worth it.
I am excited to bring this opportunity to all shareholders of Drake Gold Resources.
The entire Drake Gold team thanks you for your support.
Clayton Smith, Director of Drake Gold Resources Inc.
Wednesday, August 8, 2007
Long Term Growth
As DKGR moves through and achieves the different steps in its accounting review its aim is long-term growth. As it passes milestones such as full reporting status, PrimeQX listing, comprehensive audit and the OTCBB listing there will be a number of objectives yet to earn.
One that is foremost for the company is an eventual senior listing. “We look forward to following in the footsteps of affiliated companies such as Tara and Paramount Gold [which recently joined the AMEX]. These are companies that we have been involved with and have received a great deal of advice from. Tara Gold Resources’ Rich Biscan has been invaluable as an advisor to the company at the same time he draws closer to a senior listing for TRGD,” according to company president John Marconette.
The company is going where Paramount Gold Mining and Tara Gold Resources have already been and benefited from their experiences as a result. With the guidance of our executive summary and the projects we have staged for development, DKGR has a potent combination moving into the future. It is with this set of attributes that we will build the book value of the company and then move to list on a senior exchange as Paramount Gold Mining has and Tara Gold Resources will soon.
One that is foremost for the company is an eventual senior listing. “We look forward to following in the footsteps of affiliated companies such as Tara and Paramount Gold [which recently joined the AMEX]. These are companies that we have been involved with and have received a great deal of advice from. Tara Gold Resources’ Rich Biscan has been invaluable as an advisor to the company at the same time he draws closer to a senior listing for TRGD,” according to company president John Marconette.
The company is going where Paramount Gold Mining and Tara Gold Resources have already been and benefited from their experiences as a result. With the guidance of our executive summary and the projects we have staged for development, DKGR has a potent combination moving into the future. It is with this set of attributes that we will build the book value of the company and then move to list on a senior exchange as Paramount Gold Mining has and Tara Gold Resources will soon.
Monday, August 6, 2007
Fiscal Discipline
If you read through the executive summary (below) you'll notice a theme emerge. The theme of course is fiscal responsibility. As company president, John Marconette stated in the press release, "it's about discipline." Indeed, fiscal discipline is what separates growing natural resource companies from their competition. What we have done with our executive summary is commit to an approach that will ensure that we not jump too quickly into production.
The motivation towards full production can be great given the excitement that results. These short-term gains though can commit a company to what amounts to a very high stakes gamble. While risk is always an aspect of any undertaking we must be sure that we make the distinction between investment and wagering. Given that the company can invest in expertise that can manage risk, doesn't it make sense to fully utilize our intellectual assets before we commit our hard won capital? The executive summary is the answer to this question.
The motivation towards full production can be great given the excitement that results. These short-term gains though can commit a company to what amounts to a very high stakes gamble. While risk is always an aspect of any undertaking we must be sure that we make the distinction between investment and wagering. Given that the company can invest in expertise that can manage risk, doesn't it make sense to fully utilize our intellectual assets before we commit our hard won capital? The executive summary is the answer to this question.
Friday, August 3, 2007
Executive Summary
Drake Gold Resources’ focus is the development of a portfolio of precious and industrial metal mining projects for the benefit of its shareholders. Company executives are continually acquiring rights and leases to a multitude of projects.
Drake Gold Resources’ business is based on two simple facts,
* Precious and Industrial metals become more scarce with each passing year making their recovery increasingly lucrative.
* Formerly productive areas provide renewed profitability that are risk-managed opportunities for emerging mining companies.
Current projects have remained in focus as well. The company will use a specific set of formulation criteria in order to evaluate testing samples with an eye towards moving forward with bulk sampling. For those projects that meet this criteria the necessary steps will be followed resulting in eventual full-scale production. Those that fail to fulfill these predetermined specifications must be reevaluated with an eye towards dropping them altogether.
DKGR Formulation Criteria
* Identify specific projects showing merit. (Includes release information to the public)
* Begin initial exploration by performing grab samples and in-depth onsite investigation. (provide assays for public view)
* Consider feasibility as it relates to whether a bulk-sampling program is warranted.
* Bulk sampling would then be performed giving the company the best preliminary information for scaling up to production.
* Then the decision is made for the project to move into production. At this point we will also decide whether to find joint venture capital partners or to form a subsidiary that will then be subject to an initial public offering and finally distributed to DKGR shareholders in the form of a stock dividend.
Not performing each of these steps can too often lead to projects that under perform or fail to perform at all. Taking care to complete each step in the formulation is the first aspect of an exhaustive risk management program that results in the highest return for the company and its shareholders. Once the steps have been completed the risk management program will then require that an assessment of whether arrangements should be made to place the new project within a subsidiary or JV partnership, as described in step five of the DKGR Formulation Criteria.
Addressing this program of risk management in regard to the company’s substantial project acquisition and expansion plan was the motivation for the formation of the company’s newly augmented operations management team. A list of appropriate strategies will be considered including partnering with outside capital, whether they be through the aforementioned joint ventures or through a DKGR subsidiary. This will effectively expand the capacity of the organization while also limiting downside exposure.
Drake Gold Resources will also package certain projects, which do not fit with the company’s core business, within their own corporate structure. Funds raised through (both complimentary as well as non-core business) subsidiary IPO’s can be used to facilitate bringing these and other projects to fruition. This will essentially limit risk and provide capital for further project development, all of which will increase value for DKGR shareholders.
Drake Gold Resources’ business is based on two simple facts,
* Precious and Industrial metals become more scarce with each passing year making their recovery increasingly lucrative.
* Formerly productive areas provide renewed profitability that are risk-managed opportunities for emerging mining companies.
Current projects have remained in focus as well. The company will use a specific set of formulation criteria in order to evaluate testing samples with an eye towards moving forward with bulk sampling. For those projects that meet this criteria the necessary steps will be followed resulting in eventual full-scale production. Those that fail to fulfill these predetermined specifications must be reevaluated with an eye towards dropping them altogether.
DKGR Formulation Criteria
* Identify specific projects showing merit. (Includes release information to the public)
* Begin initial exploration by performing grab samples and in-depth onsite investigation. (provide assays for public view)
* Consider feasibility as it relates to whether a bulk-sampling program is warranted.
* Bulk sampling would then be performed giving the company the best preliminary information for scaling up to production.
* Then the decision is made for the project to move into production. At this point we will also decide whether to find joint venture capital partners or to form a subsidiary that will then be subject to an initial public offering and finally distributed to DKGR shareholders in the form of a stock dividend.
Not performing each of these steps can too often lead to projects that under perform or fail to perform at all. Taking care to complete each step in the formulation is the first aspect of an exhaustive risk management program that results in the highest return for the company and its shareholders. Once the steps have been completed the risk management program will then require that an assessment of whether arrangements should be made to place the new project within a subsidiary or JV partnership, as described in step five of the DKGR Formulation Criteria.
Addressing this program of risk management in regard to the company’s substantial project acquisition and expansion plan was the motivation for the formation of the company’s newly augmented operations management team. A list of appropriate strategies will be considered including partnering with outside capital, whether they be through the aforementioned joint ventures or through a DKGR subsidiary. This will effectively expand the capacity of the organization while also limiting downside exposure.
Drake Gold Resources will also package certain projects, which do not fit with the company’s core business, within their own corporate structure. Funds raised through (both complimentary as well as non-core business) subsidiary IPO’s can be used to facilitate bringing these and other projects to fruition. This will essentially limit risk and provide capital for further project development, all of which will increase value for DKGR shareholders.
Wednesday, August 1, 2007
Michael Krasner Joins Drake
In welcoming Mr. Michael Krasner to Drake Gold Resources, the company is dramatically expanding its organizational capacity. With the introduction of Mr. Krasner, DKGR has a much deeper ability to meet the challenges of its expansion. This management forum seeks to elaborate on the recent press release in regard to his addition to the management team. Mr. Krasner is a key component in the creation of the new oil and gas subsidiary. “With Michael’s involvement we can ensure this undertaking is being made with seasoned leadership and that profits will be maximized,” were the sentiments of president John Marconette.
Mr. Krasner has had a level of success with independent energy companies that is unprecedented. Much of this success has been due to his ability to draw on his and his father’s years of experience. He has been able to enjoy this success because of the kind of autonomy that is only available working outside of the major oil companies. In real terms, Mr. Krasner has helmed more than 100 successful oil and gas drilling projects. Many of which have included such challenging recovery efforts as offshore and horizontal drilling. Mr. Krasner brings this formidable skill set to the company and its oil and gas subsidiary.
Another important aspect of a career focused on building smaller energy companies is that executives must have a strong handle on expenses. Smaller organizations have much less room for underperformance than the majors. Mr. Krasner understands this exigence intimately, bringing fiscal discipline to an undertaking that can only flourish when expenses are controlled through strong and knowledgeable management.
Mr. Krasner has had a level of success with independent energy companies that is unprecedented. Much of this success has been due to his ability to draw on his and his father’s years of experience. He has been able to enjoy this success because of the kind of autonomy that is only available working outside of the major oil companies. In real terms, Mr. Krasner has helmed more than 100 successful oil and gas drilling projects. Many of which have included such challenging recovery efforts as offshore and horizontal drilling. Mr. Krasner brings this formidable skill set to the company and its oil and gas subsidiary.
Another important aspect of a career focused on building smaller energy companies is that executives must have a strong handle on expenses. Smaller organizations have much less room for underperformance than the majors. Mr. Krasner understands this exigence intimately, bringing fiscal discipline to an undertaking that can only flourish when expenses are controlled through strong and knowledgeable management.
Thursday, July 26, 2007
Management Forum Created
Our management forum is going to be used to expand on information in press releases as well as keep you up to date on other important information. Please bookmark the page so you can continue to check for information that is relevant to all of DKGR’s shareholders. Important changes on the horizon include ongoing management changes and revisions to our list of projects that include expansions as well as additional properties.
Now that Drake Gold Resources has fully identified and cancelled a total of 60 million shares there can be a fair and equitable distribution to those who are entitled. “The introduction of Drake Oil and Gas was a natural outgrowth of opportunities that, while lucrative, were not part of the company’s mining focused business plan,” according to company President John Marconette. He continues, “we had value that needed to be conferred to shareholders without causing the company itself to lose focus.”
With the record date not yet chosen, there are a number of aspects of the issuance that can be revealed. With an issue of approximately 30 million shares for the Drake Oil and Gas entity, there will be an equal distribution of these shares to all of DKGR’s shareholders. A good, albeit hypothetical, example of this would be a DKGR shareholder who holds 1 million shares would receive 35,000 shares (estimated) of the energy spin-off. DKGR will retain a majority interest in the company after its IPO. The public offering price is being considered and will be disclosed as we draw nearer to the as yet undetermined record date.
Please be aware that this should be considered merely a reference point, actual details of the IPO will be released prior to the offering and are dependent on market valuation.
Now that Drake Gold Resources has fully identified and cancelled a total of 60 million shares there can be a fair and equitable distribution to those who are entitled. “The introduction of Drake Oil and Gas was a natural outgrowth of opportunities that, while lucrative, were not part of the company’s mining focused business plan,” according to company President John Marconette. He continues, “we had value that needed to be conferred to shareholders without causing the company itself to lose focus.”
With the record date not yet chosen, there are a number of aspects of the issuance that can be revealed. With an issue of approximately 30 million shares for the Drake Oil and Gas entity, there will be an equal distribution of these shares to all of DKGR’s shareholders. A good, albeit hypothetical, example of this would be a DKGR shareholder who holds 1 million shares would receive 35,000 shares (estimated) of the energy spin-off. DKGR will retain a majority interest in the company after its IPO. The public offering price is being considered and will be disclosed as we draw nearer to the as yet undetermined record date.
Please be aware that this should be considered merely a reference point, actual details of the IPO will be released prior to the offering and are dependent on market valuation.
Subscribe to:
Posts (Atom)
