I told you so
Most people reading the title are going to believe I am talking about the piece I wrote two weeks ago titled, "Correction ending soon, True Gold Digs." While the timeliness of that piece was near perfect, I wouldn't dream of saying, I told you so. Even if I did.
But there is another company that had a compelling story that I wrote about in early December and again in March. In both cases, I told you so. In December, the price of the stock was $.035; in March the price of the stock was $.065. As of Friday June 13, the price of Sanatana (STA-V) was $.21. And the stock is a better buy at $.21 than it was at $.035.
The issue is over a mining property next to the Cote Gold project now owned by IAMGold. IAMGold plans on building a mine there to develop the 8 million or so ounces of gold. They wanted the ground belonging to Sanatana but didn't want to pay for it. I don't want to imply IAMGold was trying to steal the land but they certainly didn't want to pay for it. They filed for an easement. At the very least, they were trying to bully a tiny, tiny junior with little funds to fight. They thought wrong and STA did fight.
I will quote from my March piece since I'm saying exactly the same thing, "Sanatana has a JV on a series of mining claims they have spent over $9 million on in Ontario. The joint venture was with a company named Augen Gold. In late 2011, Trelawney bought Augen and six months later IAMGold bought Trelawney. IAMGold purchased Trelawney to acquire their Cote Gold project with about 8 million ounces.
The Sanatana JV is entirely surrounded by IAMGold. IAMGold has filed a request for an easement that they claim they need for water diversion, dumps and transmission lines. Since Sanatana has spent over $9 million on the project, they naturally feel the ground is theirs."
Well, the Ontario Mining and Lands commissioner held the hearing in March and released their decision in May. Sanatana posted the guts of the order in a press release dated May 09, 2014. If you read between the lines, IAMGold just got their head handed to them. Part of the decision read, "(the tribunal) is of the view that Trelawney is hesitant to provide the information either because it does not yet exist or because it fears divulging something that might be used by Sanatana to its advantage."
Sanatana's position is that the easement application should be rejected unless IAMGold (Trelawney) provides all of the information required by law and they haven't. The tribunal did set a drop-dead date for Trelawney to produce all of the data required by the Mining Act. One in particular, the pre-feasibility study that Trelawney has admitted they have finished but refuse to publish. That's certainly interesting, a junior pays for a prefeasibility study, finishes it and refuses to releases it. Gee, I wonder if the information in the pre-feas would help STA?
As of July 8, 2014, Trelawney has to cough up all the data. They won't, because they can't so will be in contempt. I would guess that Trelawney and STA would be sitting down talking turkey very soon. I would also guess Trelawney either brings a check with a lot of zeros on it or a copying machine so they can print a lot of share certificates.
In the last 12 days since my June 02 piece, IAMGold has soared from $3.30 to $4.28. With this little more respect from the market in just two weeks IAMGold will be a lot happier about handing out shares in exchange for a major property that they simply have to have to open the Cote Mine.
There will be action on the settlement front in the next four weeks that almost certainly will be favorable to STA. Those who bought at the lows just after my December piece came out have already seen a 900% increase. Those who bought after my March piece have seen a 250% increase. There was a lot more risk back then than there is today. I think the stock will double or triple before July 8 and I suspect any settlement will be substantial.
There was a press release from STA on the 12th of June that pretty much sets the timeline for action. Trelawney tried to slow things down by asking for another case conference and the tribunal told them to pound sand.
Sanatana has done an excellent corporate presentation that covers the issues and the timeline in a simple way. It is located here.
I've written about Sanatana Resources and this legal issue twice before. There is now a timeline for action that will require IAMGold to either put up or pay up. They will pay up. Buying STA in here is like having money in the bank.
Sanatana Resources is an advertiser and as such, I am biased. I am a shareholder. Do your own due diligence.