Atlantic Gold taking up the offer to purchase 100% of Cochrane Hill which has a resource of 549000 ozs is a major step forward for the company and the market has not taken any notice.
Previously Atlantic Gold owned 60% of Cochrane Hill and Scorpio Gold had 40% and Atlantic Gold was required to spend an additional 3.2 Million as part of there option agreement with Scorpio Gold to earn their 60% stake.
Out of the blue Scorpio Gold have decided to sell 100% of Cochrane Hill for just 1.6 Million and Atlantic Gold have greatfully accepted the opportunity to reduce their cost to own Cochrane Hill by 1.6 Million and effectively gain 100 % ownership of the project and effectively an additional 220000 ozs for themselves that was previously attributed to Scorpio Gold for there 40% stake.
This additional 220000 ozs is worth approx $325 million at the current gold price and makes a mockery of the current market cap of Atlantic Gold which is approx $20 million.
Atlantic Gold has total resources of 1.205 Million ozs which has an in ground value of approx US$1.78 Billion.
This stock is outrageously undervalued and the recent agreement to purchase 100% of Cochrane Hill shows that the management are shrewd operators and have positioned themselves nicely to benefit from the galloping gold price in the years ahead.
This stock is basically unknown to investors because management couldn't promote there way out of a wet paper bag.
The management have already had significant success with Plutonic Resources in the 1990's when they took a $45 million dollar company and discovered 11 million ozs and turned it into a Billion dollar company and were taken over by Homestake.
Progress has been slow but steady and there is likely to be a lot of positive progress made this year as they are just waiting for some title issues to be sorted and then they should then get the final go ahead for the Touquoy Gold Project.
Hardly anybody knows about this stock and CEO Wally Bucknell is a notoriously conservative individual who has no idea how to promote the company but when it comes to how to run a successful gold company and produce and find gold they have a mighty impressive track record with Plutonic Resources and this story is well worth investigating thoroughly because in the words of Wally Bucknell Nova Scotia and the Meguma Terrane where they are finding gold and have a huge land position is just like Western Australia was in the late 1980's and gold became a major industry in Western Australia during that period and Ron Hawkes & Wally Bucknell were there at that time helping make it happen.
Atlantic Gold is getting close to reaching the stage of becoming a gold producer in Nova Scotia and once they get into production they will have the cashflow to conduct extensive exploration of the Meguma Terrane and Wally Bucknell is confident there are many millions of ozs just waiting to be found hidden under the gravel overburden and ripe for discovery by an experienced geologist with Wally Bucknell's expertise and proven track record.
DYOR
ATV Price at posting:
4.3¢ Sentiment: Buy Disclosure: Held
