Unitronix Corporation
Post Office Box 5835
Greenville, SC 29606
Telephone: (864) 233-6391
Fax: (864) 242-0245
Unitronix Corporation (UTRX.PK) announces a number of organizational and financial changes as it moves from a software company to focus on its mining exploration projects.
First, it will submit a plan to restructure company debt to its creditors, so that the company will have the ability to raise the financial resources required by its Unitronix Mining and Exploration subsidiary for its two mining exploration projects. It anticipates that shareholder approval will be sought for this plan in the next 90 days.
Second, its negotiations with Advanced Business Communications for the company's legacy Praxa MRP system have been terminated. Over the past year, the company has lost more of its customer support clients, and has relocated its head office to Greenville, SC after closing its Peabody, MA and Westmont, NJ offices. It has reached agreements with two former employees to service the remaining clients on a revenue sharing basis. The company has sold its fully depreciated equipment conditional on having free access to its use as required by Praxa. Revenue from Praxa for the coming year is expected to be insignificant, and Praxa is no longer a factor in the company's business plans going forward.
Two simultaneous exploration programs are in progress in the Unitronix Mining and Exploration subsidiary (1522923 Ontario Incorporated). These were commenced after results obtained during the beta testing phase of Geo-Sleuth(TM), the company's software tool, pointed to regions of interest in the Sturgeon Lake Mining Camp north of Thunder Bay, Ontario, Canada.
Following ground and sample confirmation, mining claims were staked, and option agreements executed with Noranda Mining (now part of Falconbridge NYSE:FAL) and Inmet Mining (TSX:IMN). Dale M. Hendrick, the company's President, directed an in depth analysis involving data and personnel made available by the two mining companies. This also included new data from the FUGRO Megatem airborne electromagnetic survey of the area for Noranda, with the company's financial participation. A drilling campaign on specific targets is expected to commence during the winter of 2006. There is, of course, no guarantee that the results obtained from this program will be of sufficient merit to warrant further activity on the property.
The initial indications of the Geo-Sleuth(TM) tool also revealed that the area to the northwest of Sturgeon Lake, included in the test because of its proximity within the mining camp, could have potential for a new gold discovery. Additional ground and sample testing revealed gold occurrences that warranted the staking of mining claims, even though there had been limited interest and virtually no activity by others. As a result the Company, through its subsidiary, has substantial mining claim holdings in good standing over the area of interest.
The next step is to identify specific targets for a drilling campaign during 2006. Again, there is no guarantee that results obtained from this program will be of sufficient merit to warrant further activity on the property.
Pending the results of the drilling campaigns, further software development work on Geo-Sleuth(TM) is on hold.
Virtually all financing for the program to date has been provided by three directors and no compensation has been paid to them. Two of these directors have also provided major financing directly to Unitronix over the past fourteen years. These advances and loans, as well as other issues of importance, are to be included in the proposed restructuring plan.
This press release may contain forward-looking statements, such as our financial projections for 2005 and beyond. Forward-looking statements are statements that contain predictions or projections of future events or performance, and often contain words such as "anticipates", "can", "estimates", "believe", "expects", "projects", "will", "might", or other words indicating a statement about the future. The Company notes that any such forward-looking statements are subject to change and are not guarantees of future performance, and that actual results may differ materially from any such predictions or projections, based on various important factors and including, without limitation, the ability of the Company to restructure, obtain financing and the high risk and low probability of success associated with mining exploration. Further actual performance and results may, in whole or part, differ materially from results predicted, forecast or implied. Some factors that can affect the company's ability to meet objectives include; ability to fund operations, volatility of resource prices, risks related to exploratory drilling, Government regulation, and the ability of the Company to implement its business strategy.