Daulton Capital Announces $142.5 Million in Debt Reduction and Change of Name
NEW YORK, Sept. 4, 2012 -- Daulton Capital Corp. (OTCBB: DUCP), (to be renamed Arx Gold Corp), a gold and precious metals exploration company, announced the reduction of $142,500,000 in debt obligations.
Reduction of Debt
On August 28th, 2012, the Company and Shareholders of Grimsby Investments Ltd amended their Share Purchase Agreement of May 12, 2012, solely to address two previous conditions between the parties, namely the Company's obligations under that agreement to tender preferred shares and funds payable to the shareholders of Grimsby Investments Ltd.
The original Share Purchase Agreement called for $75,000,000 of debt to be secured by a 10 year Promissory Note. This new Amendment specifically waives this obligation, and both parties have agreed to the cancellation of $67,500.000 of the debt obligation. The remaining $7,500,000 of the debt remains, and is secured by a 10 year Promissory Note.
The original Share Purchase Agreement also called for a further $75,000,000 of the debt to be converted into preferred shares. This obligation is entirely waived and cancelled.
All other aspects of the original Share Purchase Agreement, including the acquisition of the ARX Springs Gold project, are unchanged and this Amendment should have no effect upon any other clause within said Agreement.
Change of Name
Previously it was announced that Daulton Capital Corp was to change the name of the Company to Celframe Arx Resources Corp. Daulton Capital Corp will now be renamed ARX GOLD CORP to better reflect the nature of its development project as a gold and precious metals exploration company and its intention to expand into the precious metal resources sector as opportunities arise.
ARX Spring Gold Project
The ARX Springs Gold property is located at Coonambula near Eidsvold in Queensland, Australia, and has significant gold resources and is estimated to generate a potential cash flow of $22 billion over the planned 20 plus 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.
As the Company move towards initial development of its ARX Springs Gold project, Daulton will continue to build out its executive team with seasoned executives, and operational managers with high degrees of experience in the mining industry. The company intends to shortly announce the appointment of an experienced mining executive to oversee development operations which announcement is expected within the next 30 days.
About Daulton Capital Corp
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. www.daultoncapital.com
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.
FOR MORE INFORMATION, PLEASE CONTACT
DAULTON CAPITAL CORP
PHONE: (917) 937-8968
SOURCE Daulton Capital Corp.