It is with great excitement and pleasure that I am able to write you with the following news. Another significant milestone on our path of creating shareholder wealth has passed. Years ago I informed you that our corporate goals was to protect and enhance the assets of this Company. Our intent also is to profitably mine gold and pass any profit beyond adequate working capital to the shareholders. No, a declaration of dividends is not eminent; however, the reality of such a declaration continues to improve.
A major obstacle facing management has been inadequate working capital to purchase the equipment and man power required to access workings where the last gold was mined by the Company (1965). A financial plan, outlines in a Private Placement Memorandum (PPM), was prepared one year ago. It was circulated in California, Pennsylvania, and Connecticut. The PPM closed on October 9, 1987. It generated $430,000 of working capital. The majority of the money was provided by East Coast investors from Philadelphia. Like so many ties throughout the history of gold financing, business men and women fro this area of the country rose to the challenge of supporting gold mining in the West. They have provided the Company with the money and good will necessary to increase our mining activities in Alleghany. Some existing shareholders also subscribed to the new issue of stock. We are indebted to the interest and support of all of these people.
The intensity of our underground activities in Alleghany increased immediately. The Company purchased new ore cars, and electric locomotive and other tools and supplies necessary to efficiently continue its rehabilitation work. Two employees were added, totaling seven. A tough road lies ahead. But to man, we believe in the ultimate success of our project.
Michael Meister Miller