Dataram (DRAM): The New Gold Exploration Company
NASDAQ:DRAM
NYSE:NEM
NYSE:GSV
NASDAQ:PGLC
Dataram (DRAM) the decades old computer memory company is about to emerge with new management, a new capital structure, and a gold exploration division that is now the main emphasis of the company. The last quarter it reported, January 31, 2017, was pre-merger but the annual report for the year ending April 30 will show much changed financials and business mission. Armed with over $10 million in new cash, from a raise, and $9 million from US Gold (as of the January balance sheet), the company will have resources to both turnaround the technology business and fund gold and copper exploration and mining.
In the exploration business, experienced people are the most important factor in the potential success of the venture and US Gold of Elko, Nevada, Dataram’s new division, is run by management with decades of experience.
Possibly the important addition to the new team is Dave Mathewson, an exploration and mining geologist with over 35 years of experience in mining and exploration, including more than 25 years in precious metals, primarily in Nevada where US Gold is focused. Dave founded and ran Nevada Gold Ventures, Gold Standard Ventures (GSV), Nevada Gold Holdings, Gold Run, and Tone Resources all in the Nevada area. He is most well known for his work at Newmont Mining (NEM) in Nevada where he explored Nevada from 1989 to 2001. Dave is a member of the Society of Mining Engineers USA (1979) and the Society of Economic Geologists (1985) and earned a MS in Geology from the University of Idaho in 1972 and a BS in Geology from the St. Lawrence University in 1967. He is one dissertation short of his PhD from the New Mexico Institute of Mining and Technology.
US Gold hired Dave on June 28, 2016 after it purchased assets of his companies, Nevada Gold Holdings and Nevada Gold Holdings, as part of the Keystone Project. Dave is well known for directing Newmont's exploration programs where it found more than 25 million ounces of gold under his exploration leadership. Numerous discoveries on the Carlin Trend are credited directly to him. He also developed the famous and now commonly used “Rain Model” on the prerequisites for the existence of Carlin-type gold deposits. He helped found Gold Standard Ventures in 2009, when it was evident that it was going to be able to acquire the Railroad district property. He started with the company when it was a $0.03 stock and three years later it reached $2.81 per share.
Recap of the Keystone Project
On May 25, 2016, US Gold entered into a purchase and sale agreement with Nevada Gold and Americas Gold Exploration, Inc. for US Gold to acquire certain mining claims related to a gold development project in Nevada. At the time of purchase, the Keystone Project consisted of 284 unpatented lode mining claims situated in Eureka County, Nevada. Subsequent to the acquisition, US Gold acquired 71 additional unpatented lode mining claims. No comprehensive, modern-era, model-driven exploration has ever been conducted on the Keystone Project and management plans to explore this area with new technology. Previously, significant amounts of low grade (+/- 0.02 opt) and anomalous gold were intersected, but results were considered uneconomic at that time, and prior projects were terminated. Subsequently on May 27, 2016, US Gold acquired certain unpatented mining claims related to a gold development project in Eureka County, Nevada from Nevada Gold Ventures LLC (Dave Mathewson’s company) and Americas Gold Exploration, Inc.
In addition to Dave, the merger brings new executive officers and directors from the gold operation. They are seasoned gold mining executives, some of whom have already worked together.
They currently are:
Edward M. Karr - Chief Executive Officer, President, and Director
David A. Moylan - President - Dataram Division and Director
David S. Rector - Chief Operating Officer and Corporate Secretary
Timothy M. Janke - Director
James Dale Davidson - Director
John N. Braca - Director
Ed Karr is an international entrepreneur and founder of several investment management companies based in Geneva and is currently CEO of RAMPartners. He is also a director of Pershing Gold (PGLC), an emerging Nevada gold producer, and a Director of Levon Resources. Ed previously served on the boards of Majesco Entertainment and Spherix. He has more than 25 years of capital markets experience and in 2004, Futures Magazine named him one of the world’s Top Traders. Ed received a B.S. in Economics/Finance from Southern New Hampshire University.
David S. Rector has been serving as the COO and a member of the board of US Gold since April 2016. In addition, he serves as the interim CEO of Sevion Therapeutics and as a member of its board of directors. David also served as a director of Majesco Entertainment from 2015 to 2016 and as a director of SciVac Therapeutics, Inc. Since 1985, David has been a principal consultant with The David Stephen Group. He served as a director of, or was senior management for, a number of gold companies: the Dallas Gold and Silver Exchange Companies and MV Portfolios, Valor Gold, Pershing Gold, Sagebrush Gold, Ltd., Nevada Gold Holdings, Universal Gold Mining, and Standard Drilling. David also served in senior management positions with Nanoscience Technologies and Sunset Designs, and worked at Crown Zellerbach. He earned a BS in Business Administration and Finance from Murray State University in 1969.
Timothy M. Janke has been serving as a member of the board of directors of US Gold since April 2016. Tim has been the COO of Pershing Gold Corp. since August 2014 and the president of his own consulting business providing mine operating and evaluation services to several mining companies. His extensive gold mining experience includes working at Renaissance Gold, Goldcorp Inc. and its predecessor Glamis Gold, and the Marigold Mine. He is a past Director of the Nevada Mining Association. He has a B.S. in Mining Engineering from the Mackay School of Mines.
James Dale Davidson is the co-writer of the newsletter Strategic Investment and has been a member of S.A.C.S. OF Beaverton LLC since 2015, Founding Director of Vamos Holdings since 2012, Director of Solar Avenir since 2016, Founding Director of Telometrix since 2016, and Founding Managing Member of Goldrock Resources, LLC since 2016. James first became active in the mining business after his forecast of the collapse of the Soviet Union was bore out. James founded Anatolia Minerals with an initial capital of $800,000, which grew to a market cap of $3.5 billion. Davidson is a graduate of Oxford University and an author of several books.
This new team and company vision will transform Dataram dramatically and a new set of investor eyes will certainly be watching. Gold investors will certainly find a new investment vehicle while tech investors eschew the company possible leading to an opportunity for those taking an early look at the transformation.
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