Dutch Gold Builds Takes Aggressive Steps to Improve Balance Sheet Moves to Liquidate Subsidiary, and Enhance its Ability to G...
April 17 2014 - 08:00AM
Access Wire
ATLANTA, GA / ACCESSWIRE / April 17, 2014 - Dutch Gold
Resources, Inc. (DGRI.OTC) (the "Company")
(http://dutchgoldinc.com) today announced that its’ Board of
Directors has authorized management to liquidate one of its wholly
owned subsidiaries, Dutch Mining LLC. This action does not
impact on the operations of the parent, DGRI.
There has been no business activity in Dutch Mining, LLC since
2008. There are no material assets in the subsidiary,
as some of the assets were sold off for the benefit of taxing
authorities. The prior landlord, Rendata Industrial Park, LLC, took
the bulk of the assets of Dutch Mining LLC under the terms of its
lease agreement.
The Company expects to place Dutch Mining LLC into a Chapter 7
bankruptcy proceeding later this month. DGRI will file
an 8K with the Securities and Exchange Commission today, with the
applicable resolutions of the Board of Directors. The Company
believes that the bankruptcy process will take ninety to one
hundred twenty days. The likely outcome will be that the
Company will reduce its indebtedness by approximately $3,500,000,
positively impacting both the balance sheet and profit & loss
statement by Q3 2014.
Said Daniel Hollis, CEO, "While we remain disappointed by the
dismal results of our acquisition of Dutch Mining, LLC, we are
pleased to close this chapter of the Company’s history.
This action will free us up to focus on the remaining indebtedness
in DGRI, the parent company, where we will work vigorously to
further purge the balance sheet. We believe that our new business
model should be allowed to grow unencumbered and we will work
diligently to mitigate our remaining debt through alternative debt
resolution."
At the end of this process, the Company expects to have a
$24,000,000 tax loss carry-forward, which will be used to shelter
earnings from taxation over the next one to two years. The
combination of debt elimination and the NOL improves the Company’s
likelihood of becoming a successful acquirer as it seeks to grow by
rolling other companies into its portfolio of offerings. This
action may also positively impact the Company’s ability to finance
acquisitions as well.
Forward-Looking Statements
This press release contains forward-looking statements that
reflect the Company's current expectation regarding future events.
Actual events could differ materially and substantially from those
projected herein and depend on a number of factors. Certain
statements in this release, and other written or oral statements
made by Dutch Gold Resources, Inc. are "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. You should not
place undue reliance on forward-looking statements since they
involve known and unknown risks, uncertainties and other factors,
which are, in some cases, beyond the Company's control and which
could, and likely will, materially affect actual results, levels of
activity, performance or achievements. The Company assumes no
obligation to publicly update or revise these forward-looking
statements for any reason, or to update the reasons actual results
could differ materially from those anticipated in these
forward-looking statements, even if new information becomes
available in the future. Important factors that could cause actual
results to differ materially from the company's expectations
include, but are not limited to, those factors that are disclosed
under the heading "Risk Factors" and elsewhere in documents filed
by the company from time to time with the United States Securities
and Exchange Commission and other regulatory authorities.
For further information, please see www.DutchGoldInc.com or
please contact Daniel Hollis, CEO of Dutch Gold Resources, Inc. at
404-981-7424.
SOURCE: Dutch Gold Resources, Inc.