Dataram's plans to acquire U.S. Gold Corp. to
diversify its business would give it access to potentially high-growth mining
projects in Nevada and Wyoming.
Dataram
Corp. (DRAM:NASDAQ), which has been in the IT memory business, intends to
acquire U.S. Gold Corp. as part of its strategy for
business diversification and growth through acquisition. The company stated
in its March 9 news release that the "natural resources segment
represented a market opportunity that would diversify the Company's business
model and thereby potentially mitigate risk associated with focusing on one
industry."
U.S. Gold Corp. is advancing the Keystone project on the Cortez Trend in
Nevada and the Copper King project in Wyoming. Last year exploration
geologist Dave Mathewson joined U.S. Gold as vice president and head of
exploration. Mathewson is credited with discovering the Tess, Northwest Rain,
Saddle and South Emigrant deposits when he was head of Newmont Mining's
Nevada exploration team. His work also led to the consolidation of the
Railroad-Pinion district and the North Bullion and Bald Mountain discoveries
when he was at Gold Standard Ventures.
Dave Moylan, Dataram's chairman and CEO, said of Mathewson, "Dave is
a strong addition to the U.S. Gold team and brings more than 35 years of
exploration experience in Nevada. He is a well-known and respected
exploration geologist who is credited with many discoveries, and one of a
handful of world-class geologists that historically finds new gold
deposits."
Dataram has called a special meeting of shareholders on March 30 to vote
on the acquisition. The company also noted that Dataram to approve the merger
and implement a reverse split of common stock. Dataram also noted that the
"Board will also declare a special dividend for the shareholders of
record as of no less than five (5) business days prior to closing. This means
the Company shareholders of this record date will receive a special dividend
from the net proceeds should the Board elect to divest the memory business
within eighteen (18) months of the Closing Date of the U.S. Gold acquisition.
While there is no current plan to divest, should this become a future
consideration, the intent is to ensure the benefit is received by, and only
by, the pre-close shareholders."
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