December 11, 2009 - Virtual Health Technologies, Inc. (OTCBB-VHGI) confirmed today that VHGI Gold (a wholly owned operating subsidiary of VHGI) is moving forward in its plans to develop the Treasure Gulch Gold Mine. Plans are currently being evaluated for the construction of a 6 Ton/Hr hard rock processing facility to target the $50,000,000.00 in potential gold reserves detailed in VHGI's 8K filing. To that end the company is assembling an advisory board to be staffed with experienced gold industry profession."
"Even taking into account start up costs and front-end capital expenses, the 12 month pro-forma financial model shows us to be cash flow positive within 120 days of commencing operations at the Treasure Gulch and Zero Mines. An initial investment of $1.5 million could produce first year revenues of $4.7 million and earnings of $3.4 million; second year revenues and income are forecast higher as the bulk of the expenses come from the initial construction costs," said Jim Renfro, President of VHGI.
"While financing requirements need to be addressed and other work remains to transition the property into a profitable venture, we intend to progress as quickly as possible," continued Renfro. "VHGI is in the midst of assembling an advisory board of mining professionals with public company experience to help get this property into production and evaluate other opportunities within the overall gold market that fit our model of leveraging different performance-based sectors of the economy to maximize returns for our shareholders."
Dividend for VHGI Shareholders
As previously reported, the company anticipates selling certain of its health care assets to Wound Management Technologies, Inc. (OTCBB-WNDM) in exchange for royalties, $1,000,000 in cash and debt and 4,000,000 shares of WNDM stock. Upon completion of this sale, the company plans to distribute the 4,000,000 shares of WNDM stock as a dividend to VHGI shareholders, subject to completion and effectiveness of a re-sale registration statement. Under our current capitalization structure this would equate to roughly 8 shares of WNDM for every 100 shares of VHGI owned by our shareholders. The asset sale is still subject to certain conditions, including the completion of due diligence and negotiation of a definitive purchase agreement. WNDM closed at $2.10 on 12/9/09 and VHGI closed at $0.30.
Recent VHGI Buy Recommendation, Long Term Target of $2.48 for VHGI
Additionally, VHGI confirmed that the analyst report by Paul Cohen is in the process of being released through various dissemination channels over the next few months. Cohen Independent Research Group, Inc., a leading independent fundamental research firm, has issued a research report on VHGI with a "buy" recommendation and a long-term target price of $2.48. Mr. Cohen has been compensated by VHGI for his analysis and distribution of the report; for the full report and more information including complete compensation disclosure please visit http://www.vhgigold.com. In addition to the analyst report, the company has contracted with http://www.Standoutstocks.com to profile VHGI. The company will also issue alerts via Twitter at www.twitter.com/vhgigold, and press releases and the VHGI Gold corporate profile will be featured on the main page of http://www.kitco.com , one of the most highly trafficked portals for Gold and Precious Metals News and online Bullion Product sales and purchases.
Investors are invited to obtain information concerning our operations at http://www.virtualhealthtechnologies.com or http://www.vhgigold.comor by calling shareholder relations at 859-514-6982.
About VHGI and VHGI Gold
VHGI is a diverse company with assets and interests focusing on opportunities within the Healthcare Technology Industry and Precious Metals / Energy Resources Markets. VHGI Gold, a wholly owned subsidiary of VHGI has recently initiated steps to leverage the company's operating history and corporate resources within the Gold Mining, Precious Metals and Energy Resources Markets. Although Gold is selling at 25 year high prices and Oil & Gas continue to be trading at significant premiums, global economic events have created significant opportunities within these markets. VHGI intends to pursue these opportunities through Lease-Purchase opportunities, Acquisitions and Joint Ventures for the goal of enhanced shareholder value.
"Safe Harbor" Statement
VirtualHealth Technologies, Inc. and VHGI Gold, LLC cautions investors that none of the information concerning the valuations of mineral deposits or other data reported above has been verified by outside geologists or other verifiable sources beyond representations made to VHGI which ultimately came from the owner of the subject property and their associates. The United States Securities and Exchange Commission permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on this website, such as "reserves," "resources," "geologic resources," "proven," "probable," "measured," "indicated," and "inferred," that the SEC guidelines strictly prohibit us from including in our filings with the SEC.
Under The Private Securities Litigation Reform Act of 1995: The statements in the press release that relate to the company's expectations with regard to the future impact on the company's results from new products in development are "forward-looking statements," within the meaning of the Private Securities Litigation Reform Act of 1995. Since this information may contain statements that involve risk and uncertainties and are subject to change at any time, the company's actual results may differ materially from expected results. This document may contain forward-looking statements concerning the Company's operations, current and future performance and financial condition. These items involve risks and uncertainties such as product demand, market and customer acceptance, the effect of economic conditions, competition, pricing, the ability to consummate and integrate acquisitions, and other risks and uncertainties detailed in the Company's SEC filings. The Company undertakes no obligation to revise any of these statements to reflect the future circumstances or the occurrence of unanticipated events.
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