MONTREAL, QUEBEC, Mar 12, 2014 (Marketwired via COMTEX) — Golden Tag Resources Ltd. (the “Company”) CA:GOG -22.22% wishes to provide an overview of operations including cost reductions in 2013 and going forward into 2014. In an effort to conserve funds, the Company in 2013 significantly reduced direct operating expenses (unaudited) by an amount of $198,383 or 48% from $413,683 in 2012 to $215,300 for the same period in 2013. Also, Golden Tag announces that it has signed two executive service contracts, which provide for significantly reduced current compensation to the Company’s President/CFO and its CEO in light of market conditions. The President’s agreement provides that from January 1, 2013 the historical compensation of $145,000 year is reduced to a base fee of$65,000 unless and until the Company has a minimum of $100,000 in unallocated working capital. The $80,000 is not accrued during any period when the minimum working capital is not in-hand but would be accrued if the agreement is terminated without cause by the Company before its 5 year term expires. There is a 36 month change of control severance based on the historical level reflective of 23 years of service to the Company. The CEO has been reduced to a base Fee of $20,000 per year and a per diem during periods of exploration activity. The CEO is entitled to a lump sum of $200,000 if there is a change of control within the three year term of the agreement reflective of 8 years of service.
Cash and Receivables at December 31, 2013 (unaudited) were $506,471 including $409,186 of receivables, $406,317 of which is related to VAT (IVA) owed for expenditures incurred by the Company for operations in Mexico. The Company recently received $215,900 of this amount. Accounts Payable at the same date was $44,695.
The Company completed an updated 43-101 Resource report in 2013 (see company news release of February 26, 2013), which can be viewed at Golden Tag’s website together with a presentation on the San Diego project. Also, as previously announced (see Golden Tag news release of July 13, 2013), the Company was granted a one year extension from March 2014, to March, 2015 to complete the required remaining approximate $US1 million of exploration expenditures on its San Diego Mexico project to earn an additional 10% interest in the property from its current 50% to a 60% interest. The purpose of the extension was to give the Company more flexibility in terms of time to raise the required funds to complete the earn-in.
The Company is presently planning for the next phase of exploration work including a focus to the near surface environment on the property and particularly the portion of present resources contained within 150 to 200 metres from surface.
Shares issued and outstanding, which are the original shares dating back to the incorporation of the company in 1982, are 53,426,558.
Cautionary Statement: Statements in the release that are “forward looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially. For a discussion of the risk factors that are inherent in the Mining Industry see our public filings at www.sedar.com .
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Marc A. Carrier, President and C.F.O.
Phone (514) 426-8542
Fax (514) 426-8543
Email [email protected]
www.goldentag.ca
SOURCE: Golden Tag Resources Ltd.
