It is such a common theme lately; looking at small cap resources that have been pummeled. Atv shares are at historical all time lows but it is closer to the endpoint of mining/production than they have ever been before....typical story.
For the want of 3.5 hectares which has been expropriated but subject to appeal, Atv is waiting to mine $1.2 billion (970,000 ounces) of gold with costs of $140 million and further subject to a single figure royalty from memory. The appeal is expected to fail and is awaiting confirmation in Sep......
"....On 8 May 2013 Atlantic Gold announced that it had received a notice of appeal against the Supreme Court of Nova Scotia’s dismissal of an appeal by a former landowner against the vesting order issued by the Nova Scotia Minister of Natural Resources on 18 June 2012. The vesting order issued by the Minister relates to the landowner’s former 3.5 ha property, the last of 63 private properties required for development of the Touquoy Gold Mine. The Mineral Resources Act provides that Supreme Court’s decision is final and can only be challenged in the Court of Appeal on a question of law. Grounds for the appeal are that the Judge erred at law by incorrectly holding that the procedure followed by the Minister met the requirements of natural justice and considering factors external to the review of the Minister’s provision of natural justice. The Nova Scotia Court of Appeal has now set 13 September 2013 for this appeal to be heard. Atlantic Gold is confident that the Judge, in reaching his decision, correctly applied the law and that the Court of Appeal will ultimately dismiss the latest appeal by that former landowner....."
In my opinion these shares are/can be fairly illiquid making it subject to the ridiculous price that it is. However for a short to medium term hold I think its worth putting away. Anyway just highlighting another undervalued goldy that has lost its way ......darkest before the dawn and all that crap!...dyor.
ATV Price at posting:
2.2¢ Sentiment: Buy Disclosure: Held
