Reno, NV, Sept. 19, 2012 (GLOBE NEWSWIRE) -- Mustang Geothermal Corp. (OTC BB: URXE) ("Mustang" or the "Company") is pleased to announce that the Company has filed its Definitive Form 14C Information Statement relevant to the actions taken by the Company as the result of its entrance into a Material Definitive Agreement on March 8, 2012. The Definitive 14C Information Statement is available under the Company's profile at http://www.sec.gov.
As was previously disclosed by the Company in a Form 8-K filed on March 9, 2012 and announced in a separate press release, a majority of the Company's stockholders eligible to vote approved and authorized the Board of Directors of the Company to:
1.) Implement a 10:1 reverse split on all of the common shares of Mustang;
2.) Change the name of the Company to Dakota Territory Resource Corp, and apply for a new ticker symbol; and
3.) Acquire all of the issued and outstanding common shares of North Homestake Mining Company (North Homestake), a Nevada Corporation, subject to the terms and conditions of a Material Definitive Agreement between the Company and North Homestake dated March 8th, 2012, or as amended by the Company and North Homestake prior to closing, which is set for October 1, 2012, or as soon as is legally practicable thereafter, taking into consideration regulatory review and approval of the Financial Industry Regulatory Authority.
Focus on Gold Exploration
Over the past several years, Mustang has been engaged in the business of advancing its geothermal assets in the State of Nevada and Country of Peru. The Company actively pursued conventional and alternative capital financing to fund the development of its properties, but has been unsuccessful due to changing conditions within the industry and other factors beyond the control of the Company. In early 2012, Management determined that the Company's prospects for financing it's geothermal assets were not likely to improve in the foreseeable future and, as a result, began investigations into other business opportunities that fell within the purview of its business profile and classification.
North Homestake Mining Company is a private Nevada corporation that owns the Blind Gold Property located in the Black Hills of South Dakota, an area known for continuous gold production over the past 135 years. North Homestake's 1600 acre "Blind Gold Property" lies approximately 3 miles northwest of, and on a structural trend with, the historic Homestake Gold Mine, which before closing in 2002 produced approximately 40 million ounces of gold. The "Blind Gold Property" is underlain by Homestake Formation, an iron-formation that was the unique host for gold mineralization at the Homestake Mine. Richard Bachman, President and CEO of the Company and Gerald Aberle, Vice President and COO of the Company have a combined 44-years of mining and exploration experience with Homestake Mining Company in the Black Hills.
Despite the prolific gold production history of the Black Hills, the area is largely underexplored. Management believes, based on its firsthand knowledge and experience in the district, that the Blind Gold Property holds excellent exploration potential for the discovery of a gold deposit hosted in Homestake iron-formation. Coupled with today's higher gold prices and the benefits associated with operating in a stable low cost jurisdiction, Management believes the exploration potential of its projects in the Black Hills will provide finance opportunities that have not been available for the development of its geothermal assets, and will ultimately provide shareholders the opportunity for significant growth that does not otherwise exist in the geothermal energy sector.
To that end, the Company currently anticipates completion of the re-organization of the Company and the closing of the transaction with North Homestake by October 1, 2012, or as soon as is legally practicable thereafter, taking into consideration regulatory review and approval of the Financial Industry Regulatory Authority, following which the Company intends to immediately focus its energy and resources on gold exploration in the Black Hills.
This news release was prepared on behalf of the Board of Directors, which accepts full responsibility for its contents.
On behalf of the Board:
(signed) Richard Bachman
Richard Bachman
President, CEO and Director
Mustang Geothermal Corp
Investor Relations Contact: For more information, please contact Constellation Asset Advisors, Inc. 415-524-8500
Safe Harbor Statement
This release contains forward-looking statements that are based upon current expectations or beliefs, as well as a number of assumptions about future events. Although we believe that the expectations reflected in the forward-looking statements and the assumptions upon which they are based are reasonable, we can give no assurance that such expectations and assumptions will prove to have been correct. Forward-looking statements are generally identifiable by the use of words like "may," "will," "should," "could," "expect," "anticipate," "estimate," "believe," "intend," or "project" or the negative of these words or other variations on these words or comparable terminology. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties, including but not limited to: adverse economic conditions, competition, adverse federal, state and local government regulation, inadequate capital, inability to carry out research, development and commercialization plans, loss or retirement of key executives and other specific risks. To the extent that statements in this press release are not strictly historical, including statements as to revenue projections, business strategy, outlook, objectives, future milestones, plans, intentions, goals, future financial conditions, events conditioned on stockholder or other approval, or otherwise as to future events, such statements are forward-looking, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this release are subject to certain risks and uncertainties that could cause actual results to differ materially from the statements made. Readers are advised to review our filings with the Securities and Exchange Commission that can be accessed over the Internet at the SEC's website located at http://www.sec.gov.