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.
Friday, August 31, 2007
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.
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