Kilindi PL (0.03% of thelicense) and called for all affected parties to meet in the capital of Dar es
Salaam in the next 48 hours for an arbitrated resolution.
Canaco management stated that it expects a “speedy and favorable” outcome
to this arbitration. While it is impossible to be certain at this stage, we take
management’s guidance to mean that it expects resolution of this matter
within a week or two and that the settlement terms will be immaterial to the
company given the tiny size of the Sonora ML.
Given our view that Canaco’s stock reversed its upward trend and declined
from ~$4 to 3.14 at last close on market speculation as to the existence of a
potential title issue (during the same period, Sonora’s stock skyrocketed), we
believe that this news will be taken as a major positive. We expect the full
recovery of the decline in its share price may come after the resolution of the
arbitration in Tanzania."
From what i can tell the parties only just met yesterday, Oct 28, to attempt resolution. Guessing it is unlikely thing was settled over a cup of coffee. Likely both parties had an opportunity to state their case, then counter each other. If they were relatively close to coming to an agreement....expect negotiations would continue on to try and find an acceptable middle ground. Failing mutual agreement...anticipate Tanzanian authorities may give each their final say....then go off ....mull it over...and come back to parties and tell them how it's going to play out. In light of what i've read thus far guessing CAN has favored son status with the Tanzaian Authorities and any ruling will be favorable for them. Haven't said that though....could also see Tanzaian boy's have some fun and let the CAN lads sweat it out a bit for # of possible resaons...before delivering the (hopefully) positive news.
Clearly such a process will take a bit of time to play itself out. Let's also put this thing in perspective. We talking about a really tiny piece of land in a potentially very large high grade gold zone. For me the risk/reward profile is worth it!
So lets keep our fingers and toes crossed and give the lads a bit of time to sort this thing out :)
GLTA longs!