AU Mining have steadily been increasing there stake in Atlantic Gold and currently own 71.6 Million shares which is approx 14%. They have been buying rapidly lately and the SPP provided a lot of sellers who sold to get cash together to participate in the SPP and AU Mining happily bought those shares and now with profit taking from shareholders selling their SPP shares at a premium to the issue price of 4 cents AU Mining is picking up a large stake in ATV at bargain basement prices.
AU Mining would appear to be smart operators with very deep pockets and in the current investment climate they are taking the golden opportunity to buy ATV cheap as investors sell whilst the ASX is getting hammered.
Investors selling out of ATV are losing the chance to make a fortune and conversely AU Mining will ultimately reap a huge return on their investment.
I would surmise that AU Mining want as large a stake as they can possibly get and ideally would like to gain a controlling stake and subsequently they could then fund the Touquoy Project and loan the funds to Atlantic Gold and sign an offtake agreement to be paid back in gold for the loan.
This would make a lot of sense as they would be able to buy US$135 million of gold direct from ATV as Touquoy goes into production.
For very large investors like AU Mining it is difficult to buy a lot of gold so it makes enormous sense to take a large holding in a future gold producing company so you have ready access to the gold when it is produced and they get the double whammy benefit of owning a large holding in Atlantic Gold which is going to appreciate substantially once they list on the TSX and also when Touquoy goes into production. When Atlantic Gold has substantial funds being generated from Touquoy to spend on exploration, the skilled hands of Wally Bucknell and his team will subsequently find the many millions of ounces just sitting there in the Meguma waiting to be found by a highly experienced geologist who has a plan and knows what he is doing.(because he has done it before with Plutonic Resources)
AU Mining appear to be a friendly investor and it would seem they have substantial funds behind them and hence make for an ideal partner, they recognise the expertise Wally Bucknell has and logically would not want to do anything to make Wally leave ATV because Wally Bucknell will find the tens of millions of ounces sitting there in the Meguma Terrane, all he needs is the exploration budget and AU Mining are well aware of this important fact. AU Mining may well initiate a stand in the market once they reach 20% and this should be construed as a positive for all investors.
The financial climate is such that AU Mining are picking up a gem of a company for peanuts, they have the means to enable Atlantic Gold to become a major player and allow Wally Bucknell to fulfil his dream and realise the potential of the Meguma Terrane.
Investors have a golden opportunity to pick up a stake in Atlantic Gold at bargain basement prices in this depressed market and at a very exciting time in this companies history.
