ATLANTA, April 4, 2011 (GLOBE NEWSWIRE) -- Dutch Gold Resources, Inc. (Pink Sheets:DGRI) (the "Company") today reported financial results for fiscal year 2010.
Total assets as of December 31, 2010 were $6.3 million, compared to $1.2 million as of December 31, 2009, reflecting the acquisition of property in Basin Gulch, Montana, the subsequent reverse acquisition of Aultra Gold, Inc., the company's 67% subsidiary by Shamika Gold, Inc. As a result of the Shamika Gold transaction, the company retained 4,950,000 shares of Shamika 2 Gold, Inc. (OTCQB:SHMX). These shares, valued at $3.2 million as of December 31, 2010, are classified as a short term investment in available for sale securities and account for the significant increase in total current assets to $3.4 million as of December 31, 2010 from $0.3 million as of December 31, 2009. Total liabilities decreased to $7.7 million, from $8.1 million as of December 31, 2009. Total stockholders' deficit narrowed to $1.3 million, from $6.8 million as of December 31, 2009 as a result of the issuance of common stock primarily for the acquisition of mining properties and to retire debt.
"During 2010 we accomplished the operational and financial goals we set for ourselves at the beginning of the year to strengthen the company's balance sheet and management team and increase our portfolio of mining properties. As a result, the financial profile of the company at the end of 2010 is a vast improvement from 2009 with greater liquid assets and total assets and a reduced stockholders' deficit, due, in large part, to the acquisition and subsequent spinoff of Aultra Gold, Inc.," said Dan Hollis, CEO of Dutch Gold Resources.
"With an improved balance sheet and lower operating expenses, the Company is now a position to continue to expand our resource base. Basin Gulch and Jungo should grow organically, and we intend to grow through the acquisition of new properties. Results of the drilling program at Basin Gulch to date have been promising. The Company plans to continue the development of the management team, to facilitate the expected growth in 2011. We plan to focus most of our efforts in 2011 on advancing the drilling program at Basin Gulch toward small scale underground production while investing in technical resources and adding depth to our technical team," added Hollis.
About Dutch Gold Resources
Dutch Gold Resources, Inc. is engaged in the acquisition and development of gold properties in North America. The company's strategy is to focus on overlooked resources that have the potential to have a value creation event within 24 months of acquisition. The Company criteria call for a property to reach either near term production, or be a candidate for development through joint venture financing during the two years subsequent to acquisition. The Basin Gulch project Montana, the Jungo property outside Winnemucca, Nevada, and the Gold Bug Mine in Oregon comprise the Company's current portfolio. The DGRI management team is composed of seasoned professionals with decades of experience in geology, and in mergers and acquisitions, as well as corporate finance. For further information, please see http://www.dutchgold.com/
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.
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CONTACT: Steve Keaveney Dutch Gold Resources, Inc. (404) 419-2440
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