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LETTER TO SHAREHOLDERS
 

 

INVESTOR RELATIONS:

HANOVER|ELITE
Dodi Handy or Kathy Addison
Phone: (407) 585-1080
Email:
ir@granthartford.com
 

 

 

 

 

 

 

 

LATEST NEWS FROM GRANT HARTFORD

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December 21 2012

Dear Fellow Shareholders, Business Partners and Friends:


With the end of 2012 fast approaching, we wanted to use this occasion to, first, wish you a very happy holiday season and a prosperous New Year.  Second, we would like to review and comment on our progress and the challenges we’ve encountered during the past year, and to outline what you can expect from us in 2013 and beyond.

A Look Back

Over the course of the past five plus years, Grant Hartford has remained singularly focused on one underpinning goal: to create sustainable value and wealth for our shareholders through optimization of mining claims staked in multiple high-grade gold mining districts throughout Montana.  In an unrelenting effort to achieve this goal, we have, to date, succeeded in raising nearly $18 million to fund acquisitions and to advance development of our claims.

More specifically, Grant Hartford now controls over 4,000 acres within the prolific gold-producing Garnet Gold Mining district.  Through extensive drilling conducted in 2008, 2009 and 2010, we have estimated a 2.3 million ounce gold resource in the Garnet Mining District and the area of our Nancy Hanks and Willie Mines.  In 2011, we completed the mine and mill design for the Nancy Hanks project site.  We constructed and/or installed 80% of all necessary surface support facilities and equipment, including a mine shop, power station, miners tag-in, security and safety building and an 80-ton per hour crushing plant.  In the spring of 2012, we developed a low-cost mine plan (estimated at $332 per ounce) to extract and process our first 56,524 ton gold ore block at the Nancy Hanks Mine, grading 0.551 ounces per ton and representing proven and probable gold reserves of 31,169 ounces.  At today’s gold prices, the value of this initial target is approximately $52 million.

Having positioned the Nancy Hanks Mine to open in record time, our management team has since turned its attention to formalizing the Company’s capital formation strategies to finance the completion of the Mine and move into full gold production within 18 months.

Positioning Grant Hartford as the Exception to the Rule

Following our Annual Meeting of Stockholders this past June, we disclosed our intent to file an S-1 Registration Statement with the U.S. Securities & Exchange Commission in connection with a public offering to raise a minimum of $4 million at a price of $2 per share.  It was our plan to complete this offering in tandem with the closing of a secured term loan on or before the end of September, thereby providing us with the growth capital necessary to advance the first of many gold mining projects we have in Montana.  Unfortunately, this capital raising event did not occur due to a variety of factors, not the least of which was, and remains, the volatile dynamics affecting and influencing the U.S. capital markets for small and micro-cap companies.  The realities of today’s Wall Street environment, as we’ve come to understand them, are seemingly working against small companies such as ours – irrespective of our strong and compelling growth potential and long-term value proposition.  We’ve been told that ‘build it and they will come’ is simply an axiom that no longer works in today’s small-cap market.  Rather, fewer retail brokerage firms can encourage clients to buy low-priced, smaller public company stocks.  There are fewer brokerages and investment banking houses that focus on the capital markets and corporate finance needs of small-cap companies; and many institutional investors have gone upstream to buy shares of larger, less risky, more liquid companies.  Consequently, the odds of achieving success in the current environment for a Midwestern gold mining company in development are indeed challenging. So what...

There is another reality that has stood the test of time, that is: there are always exceptions to the rule.  The fact of the matter is that Grant Hartford is working hard to distinguish our Company as one of the exceptions that transcends the limiting ‘realities’ of the small-cap market – and we believe we will indeed prevail.

Plan of Attack

Earlier this year, we adopted a very proactive stance on positioning Grant Hartford as a company worthy of broad investor attention and support.  To aid our efforts, we have retained Hanover | Elite, a nationally-recognized, award-winning corporate communications and investor relations firm with offices in Florida and Southern California. Hanover | Elite has been working in close collaboration with our management team to develop a comprehensive messaging platform that will emphasize the exciting investment opportunity that Grant Hartford represents.  This includes preparing all new presentation materials and arranging introductions to investment banking firms, broker-dealers and small-cap institutional investors, among other potential new stakeholders.

To showcase our Company to key investor audiences, we have been participating in a series of high profile investment/financial conferences around the country.  In July, we hosted shareholder information sessions in Indianapolis, and in August we again held one in Denver.  During the fall, we presented at the National Investment Banking Association’s conferences held in New York and Las Vegas, the Financial Services Exchange “Connect for Success” conference, held in Phoenix, and the Hard Assets Conference in San Francisco.

At each of these events, we were received very well, with many attendees concurring that our business plan is precisely on point and represents a truly exciting investment opportunity. In fact, as a result of these events, we are currently in active engagement discussions with three leading investment banking firms with noted experience and corporate finance expertise in the metals and mining industry. In addition, we are exploring possible relationships with six other firms who have indicated interest in working with us at some level.   We have opened discussions with a dozen others that have expressed interest in providing market support for our Company’s common stock, once we commence trading and have begun producing gold from our Nancy Hanks Mine.

Each of these groups agree with us that Grant Hartford is indeed financeable, but it will require more time and a great deal of hard work and thoughtful execution to complete, if we are to avoid a financing that could be detrimental to our fellow shareholders.  As a consequence, we are focusing our capital raising efforts on securing non-dilutive debt financing, and/or a possible joint venture with another mining operator who has both the expertise and the capital resources necessary to ensure that we are able to bring the Nancy Hanks Mine into full production on an expedited basis.  Everyone agrees that nothing will boost our shareholder value faster than producing gold!

In closing, we’d like to thank all of our employees for their dedication and commitment to our Company.  For those of you who may be standing by, we look forward to bringing you back on board as soon as financing is secured, so that we can all focus our time and energy on our true passion – producing gold.  To our many business partners, vendors and suppliers, we’d like to also thank you for your support, patience and the confidence you’ve placed in us.  And, finally, we’d like to thank our shareholders, without whom none of this would be possible. After years in development, Grant Hartford is nearly there, so please keep the faith. We take the trust you’ve placed in us very seriously and we fully intend to deliver.

Fortuna Favet Fortibus (Fortune Favors the Bold)


Aaron Charlton Executive Chairman

Eric Sauve President and CEO

BJ Ambrose Vice-President of Finance


Forward Looking Statements

Statements made in this Letter to Shareholders, which are not historical in nature, constitute forward-looking statements for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. These statements are based on the Company's current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Risks associated with the Company's business include, but are not limited to, the risks associated with any failure by the Company to successfully raise the growth capital necessary to move its Nancy Hanks Mine into full production; achieve profitability and/or issue any future dividends to shareholders; as well as other risk factors described in the company's periodic filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Qs. All information in this Letter to Shareholders is as of the date of this publication and the Company undertakes no duty to update this information.

This Letter to Shareholders is for informational purposes only and is not an offer to sell or a solicitation of an offer to buy any securities in The Grant Hartford Corporation, and may not be relied upon in connection with the purchase or sale of any security.

 

 

 
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