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Candelaria Mining Corp T.CAN


Primary Symbol: V.CAND Alternate Symbol(s):  CDELF

Candelaria Mining Corp. is a Canadian gold-copper exploration company with a portfolio of two highly prospective projects in Mexico. The Company owns 100% of the Caballo Blanco and the Pinos Gold Projects. The Caballo Blanco license area is located on the eastern coast of Mexico in the state of Veracruz, 65 kilometers northwest of the city of Veracruz. The most advanced project in the license area is La Paila, which is conventional open pit/heap leach mining operation targeting approximately 100,000 ounces of gold production annually. The Pinos mining property and historical mining district is located in the municipality of Pinos, Zacatecas state in north-central Mexico near the town of Pinos, Zacatecas. The property lies 405 air-kilometers northwest of Mexico City and is 67 km west-northwest of the city of San Luis Potosi, 113 km east-southeast of the city of Zacatecas, and 85 km northeast of the city of Aguascalientes.


TSXV:CAND - Post by User

Post by bigguy6on Oct 29, 2010 12:28pm
467 Views
Post# 17630930

TD's Take On It

TD's Take On ItHere's TD's take on disputed area from Oct 19 release.  They seem to think CAN title is sound and continue to maintain there $6 target for the stock.


"Canaco Resources Inc.

(CAN-V) C$3.14

Title Confirmation Major Positive

Event

Yesterday, Canaco Resources Inc. responded to an October 15 news release

issued by Sonora Gold & Silver Corp. (SOC-V; not rated). The Sonora news

release claimed that it had acquired an option on a tiny Mining License (ML)

within Canaco’s 100%-owned Kilindi Prospecting License (PL). The Kilindi

PL hosts Canaco’s flagship Magambazi discovery.

Impact – SIGNIFICANT POSITIVE

The Commissioner of Mines in Tanzania confirmed the title to Canaco’s

Kilindi PL. The Commissioner also informed the company of the competing

Sonora ML, which covers 0.075 km2 of the 196 km2 Kilindi PL (0.03% of the

license) 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!

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