Black Dragon Advances Negotiations Relating to Potential Major Funding
According to President of Black Dragon Resource Companies Joseph Lanza, the Company is in final negotiation with a Funding Group to form a joint venture whereby the Funding Group will provide financing to the joint venture and to Black Dragon in a very substantial amount, which funding, according to Mr. Lanza, could well exceed $100,000,000. in debt financing.
The transaction is conditioned upon the audit being completed by the Funding Group, a verification of Black Dragon's oil and gas reserves estimated at 12.7 Billion which has already been completed to the satisfaction of the Funding Group and the delivery of Black Dragon's financial information to the Funding Group, which also has been accomplished. The only significant remaining condition to be satisfied is the details of a joint venture agreement, satisfactory in form to both parties.
Black Dragon will not disclose the name of the Funding Group in order to protect against interference with the negotiations, which should be concluded very soon. Upon consummation of the transaction the Funding Group will own 51% of the joint venture and Black Dragon 49% with the Funding Group to install new management, "including my resignation," added Mr. Lanza.
The transaction is subject to Board of Directors and shareholders' approval and Management intends to present the proposed transaction to the shareholders at the adjourned stockholders meeting, Wednesday, January 16, 2008. No further details of the transaction were disclosed.