ATLANTA, May 12, 2011 (GLOBE NEWSWIRE) -- Dutch Gold Resources, Inc. (OTCQB:DGRI) (the "Company") today announced it has entered into a Letter of Intent to acquire certain gold properties of Double E Enterprises in Arizona. Completion of the acquisition is subject to the execution of definitive agreements, due diligence review and approval of the Board of Directors of Dutch Gold.
The project is located northwest of Phoenix, AZ and consists of 6 BLM mining claims. The property is permitted for exploration and limited production. Recently there has been modest production from the project. Early mine workings date back to the work done by the Spaniards in the 1700's. The Company hopes the venture may start generating cash flow during Q3 2011.
The Company has a three-fold plan for the mine. First, DGRI intends to continue the limited production with a goal of increasing production continuously over the next two years. To this end, the Company expects to fund modest capital expenditures over the next three months. These capital expenditures will be made to enhance recovery of existing mining efforts, as well as to expand the amount of ore mined. Further the Company intends to conduct further exploration of the property, particularly along existing vein structures. Accordingly, the Company expects to conduct a bulk-sampling program, followed by drilling program during Q3 and Q4 2011. Finally, the Company intends to acquire additional property in the vicinity of the Double E Enterprises mine.
"Based on current information, the Company believes that this acquisition can be accretive to earnings in 2011. We have looked diligently for prospects that have the capacity to go into production within twelve months of acquisition, and we anticipate that this property will do so within three months of acquisition," said Daniel Hollis, CEO of DGRI. "Our team is executing on our strategic plan, bringing in the first acquisition of 2011 that fits our model," added Mr. Hollis. "We look forward to achieving our goal of early production from this project. Combined with our strategic drilling program at our Basin Gulch property, we believe that this can be an excellent addition to the Company's portfolio of projects."
Closing is expected immediately upon completion of due diligence and any regulatory approvals, if necessary, in June 2011.
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 .
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: Tom Leahey, CFO Dutch Gold Resources, Inc. (404) 419-2440