Grandichhttps://www.grandich.com/2012/09/grandich-client-spanish-mountain-gold-37/
Spanish Mountain Gold just announced the signing of a cooperation agreement with a First Nations Indian band in the area for its flagship Spanish Mountain gold project. It is worth noting that this is the third time SPA signed such agreement with a First Nations band. This agreement with the Lhtako Dene is similar to the previous two agreements signed with the William lake Indian Band and Soda Creek Indian Band over the last two years.
These agreements essentially provide the platform for which the Company and the First Nations groups use to work together as they strive towards production. These agreements outline the involvement of the First Nations bands during the environmental assessment and permitting review process. History has shown us time and time again that these agreements are the building blocks of towards a successful permit application.
To sign three agreements at this stage of its development is quite unique and a worthy achievement for SPA. Not only does it show the Company’s willingness to work with the local community and First Nation bands but also shows the Company’s foresight to accomplish the necessary steps towards production in a very timely fashion. Once again management has proven to be very capable of further de-risking this project every step of the way.
You may notice that SPA’s achievement does not square with its share price of late. Neither I nor the Company can identify any business reasons for this softness but there are two factors in play here: 1/ a batch of well in-the-money warrants are expiring at the end of this month causing some profit taking and 2/ the overall weakness in the junior resource market.
Please note the following:
1- There’s very good support in the .25 – .30 area, a zone last seen when the company’s progress was much lower on the corporate ladder to success.
2- I own 500,000 shares at an average price of .53. I’m hoping to use the next two weeks as an opportunity to average down with up to another 500,000 shares, ideally in that great support zone.