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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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