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Mighty sound prospects in
Ecuador and Mexico: Lateegra Gold (TSX Venture: LRG)
by Glenn Wilkins - AllPennyStocks.com News Reporter
Oct 6, 2006 (AllPennyStocks.com Media, Inc.) - It may not be
with the excited, almost naïve, rush of Klondike days, but the
battle to find new gold reserves and bring their contents to
market remains a fiercely competitive one.
Among the more aggressive members of the breed is a company
headquartered in Vancouver, Lateegra Gold Corporation (TSX
Venture:
LRG), an exploration and development company aimed at
creating value for its shareholders through the acquisition
and development through to commercial production of
high-quality gold and silver projects in the Americas.
Known as Lateegra Resources until about New Year 2006, when
its capital was consolidated on a 10-old-for-one-new basis,
Lateegra Gold is heavily involved in projects in Ecuador and
Mexico, some of which are now coming to fruition.
Certainly at that time, those shares could have been
gobbled up with Christmas dinner, for the bargain price of 10
cents. In time, as the company clarified its goals as a
resource company and became more of a known quantity, the
price leaped to a 52-week peak around $1.40 in September,
before settling into its current perch around 95 cents.
A more recently completed financing has allowed for the
acquisition of a land package in Ecuador, located within
Aurelian's land package, and about four kilometers away from
Aurelian's enormous discovery at Fruta del Norte. Currently
exploring the El Condor property, Lateegra is planning to
identify drill targets for immediate follow-up drilling in
this "hot" area.
In addition, Lateegra has Mexico. In July of this year,
Lateegra joined with Tara Gold Resources to acquire a 70%
interest in the Picacho Gold Mine in Mexico's Sierra Madre
Gold Belt, just 120 kilometres south of the U.S. border.
It was there that ore grades averaged five grams gold and
15 grams silver per tonne, preliminary finds which indicate a
fairly strong presence of both metals. The Company had visited
the site three times with independent check samples taken, and
then made a $1-million commitment to further exploration, $2
million to mine development. (All figures in Canadian dollars
unless specified otherwise). All in all, the findings coming
out of this region look promising, which investors eyeing a
bargain might do well to bear in mind.
Knowing where to look for the richest gold strikes is a
result of strong leadership and vast experience in this highly
competitive field. Lateegra is headed by Michael Townsend,
with 16 years in the management and financial arenas. Townsend
has held down the post of President for the last four years,
after a similar tenure at West Hawk Development. In his
current capacities, Townsend has raised more than $12 million
in the last four years.
CEO Christopher Verrico has had 25 years experience in the
construction business, nine in the mining field. More
recently, Verrico has been involved in scoping studies as well
as exploration financing for numerous projects in Peru and
Bolivia.
In September 2005, David Francisco joined the management
team, having been VP and senior technical advisor to the CEO
of Newmont Mining. With his vast experience in international
mining, Lateegra is depending on Francisco to help transition
the company towards becoming a cash flow-producing gold
company.
Demonstrating that it is in this derby for the long haul,
Lateegra brought in Canaccord Capital earlier this month as
lead agent to raise $2.5 million in a brokered private
placement at 70 cents per unit, each unit consisting of one
common share of Lateegra and one full warrant.
For sure, observers of the gold mining scene have to be
encouraged by the Company's ability to obtain premier
properties in hot discovery areas. Anticipating preliminary
results of surface work, with drilling to follow on El Condor
in Ecuador, as well as ongoing work at the Picacho mine in
Mexico, these projects will start to contribute to the
company's cash flow. Small cap investors could see this stock
gaining momentum, and may wish to act fast.
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