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On March 20th, 2012 California Gold (CLGL) announced that it is planning to start a drilling program at its AuroTellurio Project located near the town of Moctezuma in Sonora, Mexico in April. California Gold controls two mining concessions with a total area of 76 square kilometers (18,831 acres). California Gold’s La Viuda mining concession is ONLY 1.2 kilometers south of the La Bambolla mine, owned by Minera Teloro S.A. de C.V., reportedly a local subsidiary of First Solar, Inc. (NASDAQ: FSLR).
CLGL obviously has lots of reasons to believe that drilling programs will lead to significant geological discoveries. Two separate geophysical surveys found on La Viuda mining concession plenty of similar characteristics for tellurium-gold mineralization, presents of siliceous veins with abundant manganese oxides and deep-seated mineralized target associated with an igneous intrusive.
In plain English: ALL signs of precious metal deposits.
Rumor also has it that First Solar (FSLR), through its Mexican subsidiary Minera Teloro, will be reigniting mining at the La Bambolla site.
Suppose then that drilling results come back as spectacular, as expected. Then what happens? Here’s where California Gold CEO, James Dale Davidson, steps in. Here’s what we were able to dig up in a background search:
James Davidson served as a founding director of Anatolia Minerals Development Corp. until its recent merger with a major Australian mining company.
Now read the following excerpt from a recent press release:
ANATOLIA MINERALS AND AVOCA RESOURCES COMPLETE MERGER TO BECOME ALACER GOLD CORP.
TORONTO, Feb. 18 /CNW/ – Anatolia Minerals Development Limited (“Anatolia”) (TSX: ANO) (ASX:AQG) and Avoca Resources Limited (“Avoca”) are pleased to announce the successful completion of the previously announced merger (the “Merger”) by which Anatolia, through a wholly-owned Australian subsidiary (“Anatolia Australia”), acquired all of the issued and outstanding ordinary shares and options of Avoca, resulting in the creation of a new leading intermediate global gold producer now called Alacer Gold Corp. (“Alacer” or the “Company”).
Alacer Gold Corp. (TSX:ASR) is a $2.3 BILLION company! You heard that correctly. Mr. Davidson was THE FOUNDING DIRECTOR of Anatolia Minerals, which then merged with Avoca – collectively a $2.3 Billion company.
This is huge for California Gold – if he’s done it before, he’s most certainly at it again! Mr. Davidson will be looking for repeat success with California Gold.
And – at this time – CLGL has a tiny $10M market cap.
This means that any significant results from the drilling program will boost CLGL’s valuation anywhere from 10 to 100-fold.
If we you don’t think we’re being conservative when we throw out these numbers you need look no further than recent acquisition in the minerals space, where $100M is seen as pocket change. Most acquisitions are typically to the tune of billions of dollars. That’s why we think CLGL could be a hot takeout target if positive drilling results emerge.
At the moment, California Gold trades at a big discount and any, and all, shares below 20 cents are attractive based on the possibility of an eventual takeover or merger.
California Gold Corporation
4515 Ocean View Blvd, Suite 305
La Cañada, CA 91011
California Gold Corp. is an early stage U.S. public company pursuing a mineral exploration strategy in the metals mining sector in the Americas, with an initial focus on identifying and acquiring rare and precious metals mining opportunities for development and production.
Pennystockhaven.com has been compensated tree thousand and five hundred dollars for the awareness campaign on CLGL by third party, Broke Capital Investments llc. See full disclaimer.