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SOURCE LKA Gold Incorporated
Company completes restructuring process to prepare for expansion of exploration program at its Golden Wonder mine.
GIG HARBOR, Wash., March 15, 2013 /PRNewswire/ -- LKA International, Inc. (OTCQB: LKAID) announced today that it received final approval from FINRA to change the Company's name to "LKA Gold Incorporated" and to reverse spilt the Company's shares on a one-for-two basis. LKA's stock symbol will remain the same ("LKAI") but will carry the additional letter "D" for twenty business days to signify that the stock is trading after giving effect to the reverse split…"post split."
These recent actions are the culmination of a seven-month effort to enhance the Company's recognition within the gold mining industry and prepare for expanded exploration activities at its Golden Wonder mine in Lake City, CO.
According to LKA Chairman, Kye Abraham, "This has been a lengthy process but we believe that adding 'Gold' to our name, changing our share structure and cleaning the debt off our balance sheet puts us in a much better position to maximize shareholder value as we move forward with this exciting project."
Last October, the Company finalized a settlement with creditors to exchange 7,774,221 shares of the Company's common stock for approximately $1.6 million in outstanding debt and warrant obligations
About LKA & The Golden Wonder Mine
From 1998 through the second quarter of 2006, LKA's Golden Wonder mine, with a single mining crew, produced over 133,701 ounces of gold from ore with an average grade of 16.01 oz. (453.8 grams) per ton making it one the richest gold mines in North America. In 2009, LKA commenced an exploration program to re-establish reserves and return the mine to commercial production. Since then, LKA's has shipped bulk ore samples containing more than 2,942 ounces of gold resulting in net gold sales of $3.3 million. Average ore grades during this exploration program have exceeded 1.52 ounces (43 grams) per ton. Investors are cautioned that a commercially viable ore reserve has yet to be established and there can be no assurance that one will be.
Safe Harbor Statement
LKA's plans to resume/expand Golden Wonder production are subject to a number of conditions including, but not limited to, favorable geology, successful exploration efforts, favorable financing terms/availability, permits, gold prices, market conditions, etc. Mining and related activities are inherently high-risk endeavors and there can be no assurance that LKA will be successful. This press release contains certain forward-looking statements. Statements contained in this press release that are not purely historical are considered forward-looking. When used in this press release, the words "plan", "target", "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding LKA International, Inc.'s future plans for exploration and/or production, future expenses and costs, future liquidity and capital resources, and estimates of ore, ore grades and mineralized material. All forward-looking statements in this press release are based upon information available to LKA International, Inc. on the date of this press release and the Company assumes no obligation to update any such statements. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the Company's reports filed with the Securities and Exchange Commission.
Jonathan Barkman, President
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