By: Drake Management
After careful review of the existing agreement and the continued inability to reach a mutually beneficial arrangement, Drake management has decided to terminate its relationship with Aero Surface Mining Technologies. This decision resulted primarily from Aero's 1) failure to meet its contractual obligations and deliver the Explorer 500 to Georgia as scheduled, 2) failure to provide proof they were adequately licensed, bonded and insured, and 3) failure to provide adequate assurances that such a relationship would be in the best interests of our shareholders.
Thursday, August 28, 2008
Wednesday, August 27, 2008
Drake Gold Announces the Appointments of New Chief Executive Officer and New Chief Financial Officer
By: Drake Management
Drake Gold Resources Inc. is pleased to announce Nicholas J. Slinde as its new Chief Executive Officer and Chairman of the Board of Directors and Stephen D. Wilson as its new Chief Financial Officer, Chief Compliance Officer and Treasurer.
Prior to joining Drake, Mr. Slinde worked for a number of private law firms assisting emerging business owners gain market share and implement sound corporate strategy. Mr. Slinde also spent a number of years as General Counsel and Vice President of Land Acquisitions and Development for a large real estate development company in Portland, Oregon, helping identify acquisition targets, securing financing for those projects, taking them through the land use process and completing construction. Mr. Slinde also founded Yeti Enterprises in 2004 to act as the holdings vehicle for a number of real estate redevelopment projects in Portland, Oregon. As CEO of Yeti, Mr. Slinde has increased the reach and size of the Company by conceptualizing and implementing innovative investment strategies.
Mr. Slinde's unique background creates a valuable blend of expertise stemming from his education and experience as a lawyer and his successes in business/project development. His business experience grants Mr. Slinde considerable insight into Drake's current position, as he is adept at utilizing innovative methods for raising capital and executing Company goals. Mr. Slinde's varied perspective will lend strategic illumination to Drake's current operational plans. His leadership of the Board will further bolster Drake's dedication to corporate governance, while proving to be an invaluable asset to the management team.
Mr. Wilson has a rich and varied background managing corporate finances, preparing documents by the GAAP standard, including SEC filings and serving in leadership positions at several public companies. Most recently he served as Chief Executive Officer, Chief Financial Officer and Director of California Clean Air Inc. Mr. Wilson brings his expertise and dedication to Drake’s operational team. His financial and management experience will serve as a crucial asset to our operations as Drake continues to develop and expand in the coming months.
Chief Operating Officer James Goularte remarked, “The recent additions to our core management team in conjunction with our due diligence into all aspects of company business, represent our continued investment and focus on corporate governance and financial transparency. Their involvement will be vital in creating a solid foundation by which this company will develop.”
Drake Gold Resources Inc. is pleased to announce Nicholas J. Slinde as its new Chief Executive Officer and Chairman of the Board of Directors and Stephen D. Wilson as its new Chief Financial Officer, Chief Compliance Officer and Treasurer.
Prior to joining Drake, Mr. Slinde worked for a number of private law firms assisting emerging business owners gain market share and implement sound corporate strategy. Mr. Slinde also spent a number of years as General Counsel and Vice President of Land Acquisitions and Development for a large real estate development company in Portland, Oregon, helping identify acquisition targets, securing financing for those projects, taking them through the land use process and completing construction. Mr. Slinde also founded Yeti Enterprises in 2004 to act as the holdings vehicle for a number of real estate redevelopment projects in Portland, Oregon. As CEO of Yeti, Mr. Slinde has increased the reach and size of the Company by conceptualizing and implementing innovative investment strategies.
Mr. Slinde's unique background creates a valuable blend of expertise stemming from his education and experience as a lawyer and his successes in business/project development. His business experience grants Mr. Slinde considerable insight into Drake's current position, as he is adept at utilizing innovative methods for raising capital and executing Company goals. Mr. Slinde's varied perspective will lend strategic illumination to Drake's current operational plans. His leadership of the Board will further bolster Drake's dedication to corporate governance, while proving to be an invaluable asset to the management team.
Mr. Wilson has a rich and varied background managing corporate finances, preparing documents by the GAAP standard, including SEC filings and serving in leadership positions at several public companies. Most recently he served as Chief Executive Officer, Chief Financial Officer and Director of California Clean Air Inc. Mr. Wilson brings his expertise and dedication to Drake’s operational team. His financial and management experience will serve as a crucial asset to our operations as Drake continues to develop and expand in the coming months.
Chief Operating Officer James Goularte remarked, “The recent additions to our core management team in conjunction with our due diligence into all aspects of company business, represent our continued investment and focus on corporate governance and financial transparency. Their involvement will be vital in creating a solid foundation by which this company will develop.”
Monday, August 25, 2008
Project Status Update
by: Drake Management
ATLIN SILVER PROJECT
New management has decided to relinquish all interests in our Atlin Silver Project in Canada. We determined that despite the project’s potential for silver resources, its remote location presents too great an obstacle for profitability. The Atlin Project is located in an isolated region of British Columbia. Access to the property requires at minimum a several hundred-mile helicopter ride. Also, its northern climate severely restricts the mining season. These factors convinced company management that the Atlin Silver Project was not viable.
GEORGIA MINING PROJECT
During management’s internal review, it was determined that the current structuring of leases and agreements were insufficient to protect shareholder value. Specifically, the Joint Venture agreement with Southern Mining Exploration was void and the leases held by SME were invalid. Management is currently exploring alternative options to structure agreements pertinent to the Georgia project.
The Dove Explorer 500 has not been delivered to the site, as Aero Surface Mining Technologies has failed to fulfill its contractual obligations to Drake.
EAGLE MINING
There are no substantive updates at this time, but Drake management maintains a positive working relationship with Eagle Mining and is working to secure the equipment necessary to commence production.
ATLIN SILVER PROJECT
New management has decided to relinquish all interests in our Atlin Silver Project in Canada. We determined that despite the project’s potential for silver resources, its remote location presents too great an obstacle for profitability. The Atlin Project is located in an isolated region of British Columbia. Access to the property requires at minimum a several hundred-mile helicopter ride. Also, its northern climate severely restricts the mining season. These factors convinced company management that the Atlin Silver Project was not viable.
GEORGIA MINING PROJECT
During management’s internal review, it was determined that the current structuring of leases and agreements were insufficient to protect shareholder value. Specifically, the Joint Venture agreement with Southern Mining Exploration was void and the leases held by SME were invalid. Management is currently exploring alternative options to structure agreements pertinent to the Georgia project.
The Dove Explorer 500 has not been delivered to the site, as Aero Surface Mining Technologies has failed to fulfill its contractual obligations to Drake.
EAGLE MINING
There are no substantive updates at this time, but Drake management maintains a positive working relationship with Eagle Mining and is working to secure the equipment necessary to commence production.
Wednesday, August 13, 2008
Letter from Clayton Smith Adressing Drake Board of Directors and Shareholders
Former CEO and Chairman of the Board, Clayton Smith, addresses the Board of Directors, current management as well as Drake Gold Resources Inc. shareholders regarding his tenure with the Company and assistance in completion of new management's internal review.
Please follow link below:
Clayton Smith's Letter to the Board
Please follow link below:
Clayton Smith's Letter to the Board
Internal Review of Past Projects
by: Drake Management
As part of our internal review new management has navigated the history of Drake Gold Resources through review of all press announcements and supporting corporate documentation dating back to the inception of the Company. We felt such a review was imperative as the Company has reached a transition point. New management has gained an understanding of historical performance and issues that may have impacted shareholder value. This review is to identify the issues and questions pertinent to existing shareholders and reveal the path to a brighter future.
The following is a basic outline of the information that new management has compiled, which is supported through contact with previous management and the corporate books.
DRAGOON PLACER PROJECT
During the month of March 2006, the Company signed a letter of intent for 1280 acres of potential placer grade land through Thunder Gulch Resources Ltd. Over $50k was invested into the due diligence of the project south of what is known as the Pierce Mountain. Although it was felt the project had merits, the Company at the time did not see it as economically viable and turned its focus to other mining projects. Management’s working relationship with Thunder Gulch, however, was left in good standing.
SPECIALTY ASSET SPIN OFF
In late March 2006 the Company had the opportunity to negotiate a spin-off of the former business’s assets. The previous company had patented processes and licenses that supported their business model and management wanted to find a way to benefit its shareholders with what was left of the historical model. Although negotiations were moving forward it was seen that the Company would have to output capital to pay down legal fees to free up the assets plus additional expenditures due to the legal and accounting of the spin-off. Thus, the endeavor was abandoned in favor of projects more relevant to the core business.
PEGASUS CEMENTERS
Since Drake was in its exploration stage, management was focused on possible strategic acquisitions that would establish assets and revenues for the Company, management identified Pegasus Cementers as a potential target due to its ability to grow quickly through the injection of capital finance. Management financed a trip to San Antonio to meet with the owners and associates to discuss the acquisition. In Early July, management announced that it had completed the acquisition agreement with Pegasus Cementers and would issue restricted stock for 100% of their stock to complete the transaction. The structure of the agreement relied on a discounted price based on a specific day on which the Company would issue the stock. Although shares were issued for the letter of intent to acquire, ultimately management backed out of the deal due to the large amount of shares at a low share price required to be issued (700M). Management felt this acquisition would not fit into Drake’s low-dilution, high-return business model.
JACKPOT PLACER PROJECT
The Jackpot Placer Project located in Quartzsite, Arizona was identified during midsummer 2006. The project was found through Parkinson Geological Services (PGS) headed by Craig Parkinson. Mr. Parkinson went on to broker the project between Dan Patch* (lessor), and Drake Gold Resources (lessee), completing the acquisition on July 13th 2006.
*(Mr. Patch was the prospector who founded the Copperstone project, one of the largest gold finds in Arizona.)
The Jackpot Placer Project was discussed with great enthusiasm based on data received from Mr. Patch which revealed high-concentration gold samples and geological reports and estimates by PGS. The lease holder, with whom the Company had partnered, independently decided to supply certain equipment to help expedite the mining plans. The lessor subsequently delivered some large machinery and started to stockpile material to run through additional equipment yet to be acquired. At that time management had solely relied on the counsel and advice of the lessor and geologist who had brokered the deal. According to documentation received by Drake management from Mr. Parkinson, estimates for approval of BLM permits were 2-3 weeks after submission.
After a reasonable amount of time, Drake management became concerned about the timeframe of acquiring permits and pushed for updates. Management discovered that the permit process was more detailed than originally outlined to Drake and that someone who could complete the full operations and permit plan for the BLM was needed. As a result of such misinformation from parties involved, the Company began to harbor doubts over the validity of the entire project. Company management quickly brought in a professional geological team, the Gault Group, based out of Colorado and Arizona, to provide an in-depth investigation into the project to determine if the Company should continue with its intended plans regarding the Jackpot Placer Project.
During this process, interim management stepped down, followed by the appointment of several new officers. In September 2007 the Company released the investigative findings through the Gault Group. The Gault Group report contradicted previous conclusions and expectations and the entire project was put on hold. To this end, no additional work has been done on the Jackpot Placer Project and management has since released the project.
DRAKE DIAMONDS
During the attempted acquisition of Pegasus Cementers, management was introduced to the potential for a land lottery property in a diamond-producing area in Canada. Drake decided to bring on a consultant who resided in the area named Melvin O’Neil. Mr. O’Neil said the Company could secure this property, and, if managed properly, could also acquire additional properties to be explored and potentially joint-ventured. At that time, management did not anticipate the negativity in the market place due to the fallout from another junior diamond mining company in the same area that failed. Unfortunately, Mr. O’Neil had a prior association with this failed company and the “guilt by association” resulted in much negative press directed at Drake and its management. The consequence of this was a loss of investor confidence and market capitalization, prompting Management to abruptly halt the project any eliminate the diamond division.
OIL AND GAS SPIN OFF
In mid December 2006, Drake management resolved to set up a subsidiary for the purpose of acquiring oil and gas projects with the plan to dividend some of the shares of the new subsidiary to Company shareholders. Although a record date was set to qualify beneficial shareholders, management opted in a late January 2007 announcement to wait and issue that dividend at a later date due to the opportunity to cancel shares and increase the planned dividend. Over 50M shares were finally canceled and returned to authorized capital. “Drake Oil and Gas” was incorporated in Nevada to issue the dividend through. Although management expanded its oil and gas advisory team during the summer months, no acquisitions were made. Following management changes in 2008 the Company opted to shift focus away from oil and gas—concentrating on gold mining and Georgia in particular.
NORTH STAR STRATEGIC MINERALS JOINT VENTURE
Through the introduction by a member of the Board of Directors, Drake signed a joint venture agreement for the Gold Star Property in Manitoba. Management was prepared to conduct strategic exploration and a prefeasibility study of the project. Due to its focus on the Jackpot Placer Project, plus a financial strain on the operating budget, the Company put the project on hold before eventually dropping it. Management decided that time and resources would be better used on Georgia, as the assays showed great potential for exploitation.
GEORGIA PROJECT (JOINT VENTURE WITH SOUTHERN MINING AND EXPLORATION)
Due to the release of the Jackpot Placer Project, Drake Management decided they would no longer base decisions on any data lacking independent studies. With this in mind, then-CEO Clayton Smith, and Mr. Marconette formed Southern Mining and Exploration in a private registration. Mr. Smith financed the due diligence on what prospector Jan Yarrington had previously identified as a significant gold resource. Over five months throughout the spring and summer of 2007, the merits of this area were reviewed resulting in a joint-venture agreement between SME and Drake— announced in August of that year. By the fourth quarter of 2007 Drake management felt it had done due investigation into the prospects and looked at a series of strong assay reports to justify moving forward with developmental plans on the target project.
The results of these essay reports were posted on the Drake website on April 21, 2008. Additional bulk samplings occurred during first and second quarter of 2008.
ATLIN PROSPECTS
While metal markets were reaching new heights, other precious metals had become of interest to Drake management during fourth quarter of 2007. Dave Zamida, CEO of BC Gold based out of Toronto, introduced the Atlin prospects to President John Marconette. With substantial information available from the Ministry of Mines in British Columbia, the prospects look good for the silver project despite hardships due to short mining seasons and its remote location.
AERO MINING TECHNOLOGY
After the Georgia project assays yielded such good results, it was a main priority for Drake to find equipment partners to help forward the plans in that area. To this end, Mr. Marconette brought in Mr. Ken Jayne from Aero to partner on the project. An agreement was made to exchange a royalty interest for the equipment, thus providing the required equipment for production. At that time equipment was slated for delivery to Georgia in the month of June 2008.
CONCLUSIONS
Our research into all past company actions, especially relating to the acquisition and subsequent release of projects, has yielded a clearer understanding of the Company as a whole, potential issues which must be avoided in the future, and a roadmap for executing the best opportunities going forward. It is apparent from reading the above that for every project secured and explored in the future, management must obtain proper information and conduct due diligence into the project’s feasibility and requirements to bring the project to fruition. It is critical that each project, from its inception, be evaluated thoroughly. This includes obtaining an in-depth understanding of the project dynamics, in the context of the Company’s defined objectives, and engaging a comprehensive research and due-diligence plan necessary to identify revenue-generating opportunities.
We feel this look to our past has been crucial in our understanding of the Company’s history and shaping our path to a more successful future. In this vein we have restructured several aspects of Drake’s core business and will announce these changes as they reach their respective stages of completion.
As part of our internal review new management has navigated the history of Drake Gold Resources through review of all press announcements and supporting corporate documentation dating back to the inception of the Company. We felt such a review was imperative as the Company has reached a transition point. New management has gained an understanding of historical performance and issues that may have impacted shareholder value. This review is to identify the issues and questions pertinent to existing shareholders and reveal the path to a brighter future.
The following is a basic outline of the information that new management has compiled, which is supported through contact with previous management and the corporate books.
DRAGOON PLACER PROJECT
During the month of March 2006, the Company signed a letter of intent for 1280 acres of potential placer grade land through Thunder Gulch Resources Ltd. Over $50k was invested into the due diligence of the project south of what is known as the Pierce Mountain. Although it was felt the project had merits, the Company at the time did not see it as economically viable and turned its focus to other mining projects. Management’s working relationship with Thunder Gulch, however, was left in good standing.
SPECIALTY ASSET SPIN OFF
In late March 2006 the Company had the opportunity to negotiate a spin-off of the former business’s assets. The previous company had patented processes and licenses that supported their business model and management wanted to find a way to benefit its shareholders with what was left of the historical model. Although negotiations were moving forward it was seen that the Company would have to output capital to pay down legal fees to free up the assets plus additional expenditures due to the legal and accounting of the spin-off. Thus, the endeavor was abandoned in favor of projects more relevant to the core business.
PEGASUS CEMENTERS
Since Drake was in its exploration stage, management was focused on possible strategic acquisitions that would establish assets and revenues for the Company, management identified Pegasus Cementers as a potential target due to its ability to grow quickly through the injection of capital finance. Management financed a trip to San Antonio to meet with the owners and associates to discuss the acquisition. In Early July, management announced that it had completed the acquisition agreement with Pegasus Cementers and would issue restricted stock for 100% of their stock to complete the transaction. The structure of the agreement relied on a discounted price based on a specific day on which the Company would issue the stock. Although shares were issued for the letter of intent to acquire, ultimately management backed out of the deal due to the large amount of shares at a low share price required to be issued (700M). Management felt this acquisition would not fit into Drake’s low-dilution, high-return business model.
JACKPOT PLACER PROJECT
The Jackpot Placer Project located in Quartzsite, Arizona was identified during midsummer 2006. The project was found through Parkinson Geological Services (PGS) headed by Craig Parkinson. Mr. Parkinson went on to broker the project between Dan Patch* (lessor), and Drake Gold Resources (lessee), completing the acquisition on July 13th 2006.
*(Mr. Patch was the prospector who founded the Copperstone project, one of the largest gold finds in Arizona.)
The Jackpot Placer Project was discussed with great enthusiasm based on data received from Mr. Patch which revealed high-concentration gold samples and geological reports and estimates by PGS. The lease holder, with whom the Company had partnered, independently decided to supply certain equipment to help expedite the mining plans. The lessor subsequently delivered some large machinery and started to stockpile material to run through additional equipment yet to be acquired. At that time management had solely relied on the counsel and advice of the lessor and geologist who had brokered the deal. According to documentation received by Drake management from Mr. Parkinson, estimates for approval of BLM permits were 2-3 weeks after submission.
After a reasonable amount of time, Drake management became concerned about the timeframe of acquiring permits and pushed for updates. Management discovered that the permit process was more detailed than originally outlined to Drake and that someone who could complete the full operations and permit plan for the BLM was needed. As a result of such misinformation from parties involved, the Company began to harbor doubts over the validity of the entire project. Company management quickly brought in a professional geological team, the Gault Group, based out of Colorado and Arizona, to provide an in-depth investigation into the project to determine if the Company should continue with its intended plans regarding the Jackpot Placer Project.
During this process, interim management stepped down, followed by the appointment of several new officers. In September 2007 the Company released the investigative findings through the Gault Group. The Gault Group report contradicted previous conclusions and expectations and the entire project was put on hold. To this end, no additional work has been done on the Jackpot Placer Project and management has since released the project.
DRAKE DIAMONDS
During the attempted acquisition of Pegasus Cementers, management was introduced to the potential for a land lottery property in a diamond-producing area in Canada. Drake decided to bring on a consultant who resided in the area named Melvin O’Neil. Mr. O’Neil said the Company could secure this property, and, if managed properly, could also acquire additional properties to be explored and potentially joint-ventured. At that time, management did not anticipate the negativity in the market place due to the fallout from another junior diamond mining company in the same area that failed. Unfortunately, Mr. O’Neil had a prior association with this failed company and the “guilt by association” resulted in much negative press directed at Drake and its management. The consequence of this was a loss of investor confidence and market capitalization, prompting Management to abruptly halt the project any eliminate the diamond division.
OIL AND GAS SPIN OFF
In mid December 2006, Drake management resolved to set up a subsidiary for the purpose of acquiring oil and gas projects with the plan to dividend some of the shares of the new subsidiary to Company shareholders. Although a record date was set to qualify beneficial shareholders, management opted in a late January 2007 announcement to wait and issue that dividend at a later date due to the opportunity to cancel shares and increase the planned dividend. Over 50M shares were finally canceled and returned to authorized capital. “Drake Oil and Gas” was incorporated in Nevada to issue the dividend through. Although management expanded its oil and gas advisory team during the summer months, no acquisitions were made. Following management changes in 2008 the Company opted to shift focus away from oil and gas—concentrating on gold mining and Georgia in particular.
NORTH STAR STRATEGIC MINERALS JOINT VENTURE
Through the introduction by a member of the Board of Directors, Drake signed a joint venture agreement for the Gold Star Property in Manitoba. Management was prepared to conduct strategic exploration and a prefeasibility study of the project. Due to its focus on the Jackpot Placer Project, plus a financial strain on the operating budget, the Company put the project on hold before eventually dropping it. Management decided that time and resources would be better used on Georgia, as the assays showed great potential for exploitation.
GEORGIA PROJECT (JOINT VENTURE WITH SOUTHERN MINING AND EXPLORATION)
Due to the release of the Jackpot Placer Project, Drake Management decided they would no longer base decisions on any data lacking independent studies. With this in mind, then-CEO Clayton Smith, and Mr. Marconette formed Southern Mining and Exploration in a private registration. Mr. Smith financed the due diligence on what prospector Jan Yarrington had previously identified as a significant gold resource. Over five months throughout the spring and summer of 2007, the merits of this area were reviewed resulting in a joint-venture agreement between SME and Drake— announced in August of that year. By the fourth quarter of 2007 Drake management felt it had done due investigation into the prospects and looked at a series of strong assay reports to justify moving forward with developmental plans on the target project.
The results of these essay reports were posted on the Drake website on April 21, 2008. Additional bulk samplings occurred during first and second quarter of 2008.
ATLIN PROSPECTS
While metal markets were reaching new heights, other precious metals had become of interest to Drake management during fourth quarter of 2007. Dave Zamida, CEO of BC Gold based out of Toronto, introduced the Atlin prospects to President John Marconette. With substantial information available from the Ministry of Mines in British Columbia, the prospects look good for the silver project despite hardships due to short mining seasons and its remote location.
AERO MINING TECHNOLOGY
After the Georgia project assays yielded such good results, it was a main priority for Drake to find equipment partners to help forward the plans in that area. To this end, Mr. Marconette brought in Mr. Ken Jayne from Aero to partner on the project. An agreement was made to exchange a royalty interest for the equipment, thus providing the required equipment for production. At that time equipment was slated for delivery to Georgia in the month of June 2008.
CONCLUSIONS
Our research into all past company actions, especially relating to the acquisition and subsequent release of projects, has yielded a clearer understanding of the Company as a whole, potential issues which must be avoided in the future, and a roadmap for executing the best opportunities going forward. It is apparent from reading the above that for every project secured and explored in the future, management must obtain proper information and conduct due diligence into the project’s feasibility and requirements to bring the project to fruition. It is critical that each project, from its inception, be evaluated thoroughly. This includes obtaining an in-depth understanding of the project dynamics, in the context of the Company’s defined objectives, and engaging a comprehensive research and due-diligence plan necessary to identify revenue-generating opportunities.
We feel this look to our past has been crucial in our understanding of the Company’s history and shaping our path to a more successful future. In this vein we have restructured several aspects of Drake’s core business and will announce these changes as they reach their respective stages of completion.
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