ATLANTA, GA / ACCESSWIRE / April 17, 2014 - Dutch Gold Resources, Inc. (DGRI.OTC) (the "Company") (http://dutchgoldinc.com) today announced that its’ Board of Directors has authorized management to liquidate one of its wholly owned subsidiaries, Dutch Mining LLC. This action does not impact on the operations of the parent, DGRI.
There has been no business activity in Dutch Mining, LLC since 2008. There are no material assets in the subsidiary, as some of the assets were sold off for the benefit of taxing authorities. The prior landlord, Rendata Industrial Park, LLC, took the bulk of the assets of Dutch Mining LLC under the terms of its lease agreement.
The Company expects to place Dutch Mining LLC into a Chapter 7 bankruptcy proceeding later this month. DGRI will file an 8K with the Securities and Exchange Commission today, with the applicable resolutions of the Board of Directors. The Company believes that the bankruptcy process will take ninety to one hundred twenty days. The likely outcome will be that the Company will reduce its indebtedness by approximately $3,500,000, positively impacting both the balance sheet and profit & loss statement by Q3 2014.
Said Daniel Hollis, CEO, "While we remain disappointed by the dismal results of our acquisition of Dutch Mining, LLC, we are pleased to close this chapter of the Company’s history. This action will free us up to focus on the remaining indebtedness in DGRI, the parent company, where we will work vigorously to further purge the balance sheet. We believe that our new business model should be allowed to grow unencumbered and we will work diligently to mitigate our remaining debt through alternative debt resolution."
At the end of this process, the Company expects to have a $24,000,000 tax loss carry-forward, which will be used to shelter earnings from taxation over the next one to two years. The combination of debt elimination and the NOL improves the Company’s likelihood of becoming a successful acquirer as it seeks to grow by rolling other companies into its portfolio of offerings. This action may also positively impact the Company’s ability to finance acquisitions as well.
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.
For further information, please see www.DutchGoldInc.com or please contact Daniel Hollis, CEO of Dutch Gold Resources, Inc. at 404-981-7424.
SOURCE: Dutch Gold Resources, Inc.