RE: Reorganization ? Why?I am not at all sure if this will clear up anything but here is my go at it.
Here is a copy of part of a new release dated Nov 16/06--"Proposed Plans for reorganization of PNG property" that addressess distributing some of the interest retained by NGG and Van to their shareholders. I don't know of any further announcement addressing this situation.
At that point, which was early in the game the Board of NGG had not made any decision. You will note that the CEO of Vangold said that they would look at distributing some or all of the interest retained by Vangold directly to shareholders in proportion to their holdings in Vangold.
"Mr Bob McNeil, Chairman and CEO of NGG states: “We all believe that the best way to benefit our respective
shareholders is by transferring these highly prospective mineral property assets into the two new entities. Our Board
is considering how shareholders can gain most benefit from the reorganization. Our preference is to distribute some
or all of the interest retained by NGG directly to shareholders in proportion to their holding in NGG but I must
emphasize that at this time the Board has not made a final decision. If this reorganization is approved, it will allow us
to increase our activities on these projects without further major dilution of each company’s shares. For example, we
would expect to increase the current expenditures at Mt Penck by at least 100%, add additional drills to the program
and also start a drilling program to define resources at the copper properties. I believe this will be a great
opportunity for our shareholders.”"
"Mr. Dal Brynelsen, President and CEO of Vangold commented on the re-organisation by stating, “This is the first
major step forward for Vangold’s large portfolio of projects. Our mandate has always been to create solid, viable
entities from our diverse projects directly enhancing shareholder value. This particular combination of properties will
allow both new companies the opportunity to become such entities. The new companies will be well financed with a
strong balance sheet and no debt. This will ensure that exploration and development can be expedited on a more
timely schedule, with the aim of meeting our common goal that of furthering development and adding to the value of
these important assets. I agree with Bob that Vangold would also look to distributing some or all of the interest
retained by Vangold directly to shareholders in proportion to their holdings in Vangold."