David vs. Goliath III
I’ve written about Sanatana and their legal issues with IAMGold several times. On Monday November 10, Sanatana Resources and IAMGold have a hearing date in front of the Ontario Mining and Lands Commissioner for a six-day hearing over the Côté Gold Project easement dispute.
Basically IAMGold says they have a right to an easement over Sanatana’s claims without payment because they need the land for their 8 million ounce Côté project.
IAMGold is about to paint themselves into a corner. They have $500 million in 6.75% Notes due 2020 that they risk putting into default should the Commissioner determine they don’t have a leg to stand on. And you don’t have to have 7 years of college and law school to know that nobody in the legal system in Canada is going to allow a company to seize claims from someone else on evidence as paltry as IAMGold has come up with. At these prices for gold, the Côté Gold Project isn’t economic therefore there is no case for granting them an easement.
IAMGold would do well to have a heart to heart discussion with Sanatana over the weekend about the dispute. When they do, they should bring their checkbook with them or print up some new shares.
If it actually goes to a hearing, which I doubt, the hearing will take place over two weeks. There could be an immediate decision should the Commissioner see the issue in black and white terms or it could take up to 60 days for a more thought out decision.
I own 50,000 shares of Sanatana bought at a much higher price and Sanatana is an advertiser. I am biased and you should take some responsibility for your own investment decisions.