TUBAC, Ariz., Oct. 18, 2004 (PRIMEZONE) -- Tubac Holdings, Inc. (Pink Sheets:TBAH), in its ongoing effort to achieve a strategically diverse portfolio for its shareholders, announced today that it has signed a letter of intent with Hagrid Mining and Development LLC, a privately held company.
Under the terms of the agreement, Hagrid Mining and Development has agreed to a reorganization plan by which Hagrid Mining and Development will become publicly traded. As a result of this reorganization, Hagrid Mining and Development will have access to additional capital further facilitating the development of its mining properties. All the assets, including the production contracts for gold and precious metals currently owned by Hagrid Mining and Development, will be assigned to the new company. Tubac Holdings will own approximately 20% of the new, publicly traded company.
Hagrid Mining and Development has acquired production interests in patented and unpatented lode mining claims in Mohave County, Arizona, consisting of three patented and eleven unpatented claims. The claims are in a volcanic area of proven production, which was mined about 70 years ago. Production was limited due to a lack of equipment and technology leaving most of the fine gold. Modern mining equipment and techniques will facilitate the company in recovery of this fine gold resulting in a highly profitable mining operation.
The company expects the gold reserves on the claims to hold for the next 15 years. Hagrid Mining and Development anticipates its share of production to amount to approximately one ton per year valued at $12,800,000 at current prices.
Harold Tanner, CEO of Tubac Holdings states, "We are tremendously excited about the huge upside potential of this project and we believe this is the perfect time for us to enter the gold market. Savvy investors know, and it is important to note, that of the numerous gold companies in the world, only a very, very few actually are in production. Present gold prices, coupled with the potential asset value of these properties, could amount to millions of dollars to Tubac. We have taken another major step in achieving our goal of becoming a globally diverse company engaged in numerous business opportunities, both directly and through our partner companies."
About Tubac Holdings, Inc.
Tubac Holdings is a holding company which offers consulting, public and private equity services. Tubac specializes in finding undervalued small cap and microcap companies with exciting products, services or technology that are poised for explosive growth. Tubac provides these companies with equity, guidance and strategic counseling to help them succeed. Tubac has taken on equity stake in several public companies, and is in negotiations with several others.
For more information, visit the company website at www.tubacholdings.com or call 520-398-2235.
Certain statements above constitute forward-looking statements with respect to Tubac Holdings, Inc. Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Tubac Holdings, Inc. to be materially different from any further results, performance or achievements expressed or implied by such forward-looking statements.