Message #17 From:
NewsBot Date: November 2, 2005 05:32:00 AM
CGHI News Centurion Gold Holdings Announces New Strategy As Resource Development Company; Strategy to Create Significant Shareholder Value Through Disbursement of Stock and Cash Dividends
JOHANNESBURG, South Africa--(BUSINESS WIRE)--Nov. 2, 2005--In a move to leverage its significant natural resource holdings, Centurion Gold Holdings, Inc. (OTCBB:CGHI) announced today that it has grown beyond its beginnings as a gold mining company and is now successfully pursuing its business strategy as a natural resources development company.
The Company's core strategy is to buy under-priced natural resources assets including minerals, oil, and gas, contribute limited yet critical development to those assets, and resell the enhanced assets to specialized resource companies. The spun-out assets will be sold for cash or stock. A percentage of proceeds from these sales will be issued to Centurion shareholders in the form of a stock or cash dividend.
"At Centurion we have developed a core skill in identifying and purchasing natural resource assets at very advantageous pricing levels. Rather than continuing to try to fully develop the numerous valuable assets we have acquired, we are shifting our strategy to sell off assets to other specialized natural resource companies as profit opportunities present themselves," stated Centurion Gold Holdings Chairman Dale Paul.
Centurion recently announced an LOI to sell 10.4% of its holdings in Naboom Platinum Deposit to an OFEX-listed company for 20 million shares. The LOI prices the entirety of the Naboom deposit at more than $17 million, over 50% of Centurion's current market capitalization. Management intends to distribute to Centurion shareholders a portion of the 20 million share proceeds.
"Our transaction to sell Centurion's interest in Naboom is an example of how we are pursuing our new strategy as a natural resources development company. We have owned Naboom for approximately a half-year and are now in the process of selling a portion of it at a significant upside for Centurion and its shareholders. We will continue to pursue and conclude similar transactions that we believe will leave our shareholders with a portfolio of stock and cash dividends while they continue to own their Centurion shares. Additionally, our new strategy improves cash flow and reduces dilution by transferring operational and resource extraction costs to the companies who purchase Centurion assets. We intend to have ongoing business relationships with the companies that acquire our spun-out assets including co-development, shared board seats and expertise," concluded Mr. Paul.
"The recent acquisition of the Alaskan Oil and Gas project fits in perfectly with our new strategy and represents tremendous upside potential for Centurion Gold in the very short term". Centurion has commissioned an independent resource appraisal by Prator Bett LLC, a petroleum engineering consulting company providing reservoir-engineering services to its clients with over 42 years experience on the Alaskan project which is expected this week Thursday." Once we have the independent appraisal we have interested parties who in line with our strategy will be interested to close a deal with Centurion and its partners Escopeta on this valuable asset".
Centurion is currently moving forward to sell portions of its resource assets to Minmet PLC as well as other listed companies.
Centurion Gold Holdings, Inc.:
Centurion Gold Holdings is the only South African junior gold mining company publicly listed in the United States. The Company is executing a roll-up strategy acquiring proven mineral assets, and working towards "growth through acquisition". These mineral assets generally have combined the potential for a near term revenue stream and existing low cost production operations with turnaround opportunities. Based in South Africa, the Company is ideally suited to exploit new legislation implemented by the South African government in May 2004. This legislation enforces a "use it or lose it" strategy, whereby all mining claims must be prospected within a designated time frame, otherwise, such prospects revert to the state, thereby creating never before seen opportunities, particularly for smaller companies like Centurion. The Company has built a strong team of experienced management and operations mining professionals to exploit these opportunities, and is positioning itself to become a major producer by continually implementing its "growth through acquisition" strategy. www.centuriongold.com
Forward-Looking Statements:
Statements about the Company's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as the term is defined in the Private Securities Litigation Reform Act of 1995. The company's actual results could differ materially from expected results. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances. Should events occur which materially affect any comments made within this press release the Company will appropriately inform the public.
