LEXINGTON, Ky., Jan. 5 /PRNewswire-FirstCall/ -- VirtualHealth Technologies, Inc. (OTC Bulletin Board: VHGI) confirmed today that the company continues to evaluate bids for certain of its healthcare assets as part of its strategy to assemble the necessary capital to initiate gold mining production. Additionally, VHGI announced that they intend to change the name of the company as VHGI Gold (a wholly owned operating subsidiary of VHGI) looks to put the Treasure Gulch and Zero Mines into production and accelerate the company's reentry into the Gold Mining Industry.
"Previously VHGI announced that we had entered into a letter of intent to sell some of our healthcare assets to Wound Management Technologies (WNDM) in exchange for $10,000,000 in cash and stock subject to certain factors including the approval of the Board of Directors and shareholders of VHGI," said James Renfro, President, VHGI. "While this offer is still under consideration, VHGI is also exploring alternative transactions with WNDM and other entities with the goal of maximizing cash for VHGI. VHGI Gold also plans to assist with the construction of the proposed Hard Rock Processing Facility at the Treasure Gulch and Zero Mines that VHGI has under Lease-Purchase Option. Gold mining is part of our corporate heritage and we feel it is our future."
"While financing requirements need to be addressed and other work remains to transition the property into a profitable venture, we intend to get this property into production as quickly as possible," continued Renfro. "VHGI shareholders can be assured that we will seek to maximize the return on investment and overall value as we sort through these options. Even taking into account start up costs and front-end capital expenses, the 12 month pro-forma financial model shows us to be cash flow positive within 120 days of commencing operations at the Treasure Gulch and Zero Mines. An initial investment of $1.5 million could produce first year revenues of $4.7 million and earnings of $3.4 million; second year revenues and income are forecast higher as the bulk of the expenses come from the initial construction costs."
On a separate note VHGI confirmed that they will be releasing news shortly concerning a potential name change that would more adequately reflect the intended scope of operations as VHGI moves forward, subject to completion of necessary SEC filings and shareholder approval.
About VHGI and VHGI Gold
VHGI is a diverse company with assets and interests focusing on opportunities within the Healthcare Technology Industry and Precious Metals Markets. VHGI Gold, a wholly owned subsidiary of VHGI has recently initiated steps to leverage the company's operating history and corporate resources within the Gold Mining Industry and intends to pursue these opportunities through Lease-Purchase opportunities, Acquisitions and Joint Ventures. Investors are invited to obtain information concerning our operations at http://www.virtualhealthtechnologies.com or http://www.vhgigold.com or by calling shareholder relations at 859-514-6982.
"Safe Harbor" Statement:
VirtualHealth Technologies, Inc. and VHGI Gold, LLC cautions investors that none of the information concerning the valuations of mineral deposits or other data reported above has been verified by outside geologists or other verifiable sources beyond representations made to VHGI which ultimately came from the owner of the subject property and their associates. The United States SEC permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms such as "reserves," "resources," "geologic resources," "proven," "probable," "measured," "indicated," and "inferred," that the SEC guidelines strictly prohibit us from including in our filings with the SEC.
Under The Private Securities Litigation Reform Act of 1995:
The statements in the press release that relate to the company's expectations with regard to the future impact on the company's results from new products in development are "forward-looking statements," within the meaning of the Private Securities Litigation Reform Act of 1995. Since this information may contain statements that involve risk and uncertainties and are subject to change at any time, the company's actual results may differ materially from expected results. This document may contain forward-looking statements concerning the Company's operations, current and future performance and financial condition. These items involve risks and uncertainties such as product demand, market and customer acceptance, the effect of economic conditions, competition, pricing, the ability to consummate and integrate acquisitions, and other risks and uncertainties detailed in the Company's SEC filings. The Company undertakes no obligation to revise any of these statements to reflect the future circumstances or the occurrence of unanticipated events.
For Further Information: Shareholder Relations - Communications 859-514-6982
SOURCE VirtualHealth Technologies, Inc.