October 9, 2009
Ubika Research issues a research bulletin titled VG Gold Corp. gets a big partner at Davidson-TisdaleTORONTO, Canada - Ubika Research has issued a special research bulletin on the recent purchase of 31.5% interest by San Gold Corporation (TSX-V: SGR) in the Davisdson Tisdale property in the Timmins, Ontario mining camp, balance of which (68.5%) is owned by VG Gold Corp (TSX: VG.TO).
The stock of VG Gold Corp. jumped approximately 18% on this news today. Based on the deal parameters, VG's share of 68.5% in Davidson Tisdale is valued at $9.1 million, or $0.065 per share. This is similar to our expected valuation of $0.06 per share for the Davidson Tisdale property (see our report "Deeply discounted miner in the heart of prolific gold district – July 23, 2008 for details).
We view this development very favourably for VG Gold. This provides further confirmation to the high quality and advance stage gold exploration properties owned by VG Gold. Its Davidson-Tisdale property has strong untapped exploration potential and we believe that this transaction will bring more spotlight on VG Gold's potential and its undervalued status. This bulletin, initiation report and updates are available for FREE download at: http://www.ubikaresearch.com/report/vg_gold.aspx
About VG Gold Corp.
VG Gold Inc. is a TSX (VG) and Frankfurt (VN3) listed junior exploration company with several interests in the Timmins area. Its strategy is focused on leveraging the ability of its experienced exploration team to recognize geological opportunities that are located in proven mining districts but are overlooked. It has a close working relationship with Goldcorp (GG: TSX), which is a great asset. The properties now include a 10,000-ft strike length in the heart of Timmins Gold Camp, which is surrounded by several historic past mines including the Hollinger mine and the Dome mine.
About Ubika Research
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Except for the historical information presented herein, matters discussed in this document contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements.
Ubika Research, a division of Ubika Corporation, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this report. For making specific investment decisions, readers should seek their own advice. For full disclosure please visit :http://www.ubikaresearch.com/report/vg_gold.aspx
Contact Information
Vikas Ranjan : vikas@ubikacorp.comCopyright 2009, ubikaresearch. All rights reserved.