NEW YORK, May 29, 2012 /PRNewswire/ -- Daulton Capital Corp. (OTCBB: DUCP), a gold and precious metals exploration company, is pleased to announce that is has entered into an agreement to acquire Grimsby Investments Limited and its subsidiaries including two Australian Companies engaged in a Gold mining project known as the ARX Springs Gold project, located in the Wide Bay Burnett Region of Queensland, Australia.
The agreement provides for the company to acquire Grimsby Investments Limited from its shareholders together with its Singapore company ARX Springs Pte Ltd and the two Australian subsidiaries that hold the gold project known as ARX Springs in exchange for $4,298 billion in consideration, to be satisfied by the issue of 4.148 billion in restricted common stock, $75 million in non-convertible preferred share series with 5 votes per share and $75 million in a ten year non-convertible promissory note issued in favor of shareholders of Grimsby Investments Limited.
The ARX Springs Gold property is located at Coonambula near Eidsvold in Queensland, Australia, and has gold resources estimated at between 16,000,000 to 18,000,000 (Sixteen to Eighteen Million) ounces of gold and estimated to generated a cash flow of $22 billion over the planned 20 year life of the mine based on current gold prices. Queensland, Australia is well known to be a prolific gold producing State since the 1867 Australian gold rush, several major gold producing companies including BHP, Glencore Xstrata, Rio Tinto, Barrick Gold and Anglo American have been active in the State of Queensland and the area where the ARX Springs gold project is located has an extensive history of gold finds going back to early 1888 in the nearby St Johns Creek gold fields.
A spokesperson for Daulton Capital commented, "We are looking forward to working on getting the additional financing required to get the ARX Springs Gold project into gold production in order to maximize shareholder value and we are in talks with leading fund managers worldwide and we hope in next few months we will be able to raise the required capital needed." Gold continues to be of paramount importance on the global financial markets and the gold prices have been steadily rising over the past several years making our purchase potentially very valuable and rewarding for our shareholders.
The company announced the resignation of Terry Fields and the appointment of Arun Pudur as the President of the company. Arun Pudur is the founder of Celframe, a Multi-Billion Dollar Global technology company with offices in US, India & Malaysia. Arun Ramachandran and Brian James Smith would constitute the new Board of Daulton Capital Corp along with Arun Pudur.
Renowned Business Man Mr. Arun Pudur is the CEO of Celframe Technology Group of Companies since March 2001. Arun Pudur is a widely accomplished and established entrepreneur and investor in the precious minerals and mining industry in Australia, South Africa and other parts of the world. He is a graduate of the University of Bangalore majoring in Business Management.
Mr. Brian James Smith is the Managing Director of BRI Microfine Pty Ltd., a gold recovery technology company since 2008. He has a strong history within the precious mining industry through BRI Microfine Pty Ltd, particularly in Australia. His expertise is focused on development implementation, funding, improvement and expansion of the mining technology and production. BRI has licensed its propriety technology for processing gold ore at Arx Springs gold project.
Mr. Arun Ramachandran is the Co-Founder and Director of renowned advisory firm in Singapore and has over 15 years of experience in corporate finance, accounting, and taxation with very strong knowledge of various business verticals. He is a certified Chartered accountant and has done his MBA from SP Jain Institute of Management, Mumbai majoring in Finance.
The Company further announces that it has decided not to pursue the purchase and exploration of certain previously announced properties located in Papua New Guinea and that the agreements have been mutually terminated.
About Daulton Capital Corporation:
DAULTON CAPITAL CORP. (OTCBB: DUCP) is a natural resource company focused on precious metals. The New Management's corporate philosophy is to be a Share Holder Value creator, with the objective of exploring, acquiring and operating Gold projects in Australia and other countries to generate real value beginning with ARX Springs Gold Project in Queensland, Australia.
Daulton Capital has formed an experienced management team with the ability to take advantage of the tremendous opportunities that are available in the natural resource sector today. Our focus will be to explore, acquire and develop gold resource projects, and continue to invest in expansion of exploration activities and seek opportunistic special situations that can add to our portfolio of assets within the resource sector.
Safe Harbor Statement
This press release contains 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. These forward-looking statements are based on the current plans and expectations of management and are subject to a number of uncertainties and risks that could significantly affect the company's current plans and expectations, as well as future results of operations and financial condition. A more extensive listing of risks and factors that may affect the company's business prospects and cause actual results to differ materially from those described in the forward-looking statements can be found in the reports and other documents filed by the company with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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Daulton Capital Corp.
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SOURCE Daulton Capital Corp.