Atwgold's Blog

Value Creation the ATW Gold Way

Posted in Uncategorized by atwgold on April 2, 2010

April 1, 2010 – ATW 0.16 -0.015 – 669,575

The long awaited and long delayed ATW value enhancement strategy has hit the fan with prejudicial gusto and fittingly enough on April Fools’ Day.

The market was not impressed by the gruesome twosome’s efforts at value creation with the paper closing at $ .16. Begging the question why the public would buy this equity at any level, stakeholders have witnessed many millions evaporate in the name of Burnakura and this at exactly the same time management was spewing about producing 3,500 ozs gold per month from the property.
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2010-04-01 09:25 ET – News Release

ATW SIGNS LOI FOR SALE OF BURNAKURA ASSETS

ATW Gold Corp. has entered into a letter of intent with Jinka Minerals Ltd., an Australian company, to sell its Burnakura gold project to Jinka.

The sale consideration for the acquisition of the Burnakura Project is $4,253,000 (Australian), payable in full at completion. The LOI calls for Jinka to acquire a 100-per-cent interest in the Burnakura project upon closing of the sale and further calls for Jinka, within seven days of signing the LOI, to pay a non-refundable deposit of $212,650 (Australian) to the company.

more on Jinka Minerals … HERE

The LOI and the sale of the Burnakura project therein are conditional upon receipt of any required Australian regulatory approval, the receipt by the company of any required Canadian approvals (including the approval of the TSX Venture Exchange, if required), Jinka completing due diligence to its satisfaction, the company and Jinka agreeing to the list of plant and equipment included in the sale, and the execution of a definitive agreement on or before May 31, 2010.

It is anticipated that the sale price contained in the definitive agreement will allow the company to retire all current liabilities relating to Burnakura with excess finances to be applied toward working capital. The company continues to entertain all options as they relate to its Gullewa copper-gold project.

Brent Butler, chief executive officer and president, commented: “The sale of Burnakura will allow ATW to focus on strategic alternatives as they relate to Gullewa. Given the continued strength in the underlying commodity prices, ATW is considering all alternatives including the sale, spin-out or joint venture of the company’s Gullewa copper-gold project.”

The company further announces the resignation of David Stone,

former chief operating officer of the company’s Australian operations, as a director of the company in conjunction with its divestiture of Australian assets. Concurrently, Robert Schafer has resigned

from the company’s board of directors. The company thanks them both for their past contributions to its business affairs and wishes them well in their future endeavours.

Mar 22/10 Mar 16/10 Schafer, Robert – Disposition -33,000 $0.200
Mar 18/10 Mar 15/10 Schafer, Robert – Disposition -36,500 $0.200

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One Response

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  1. atwgold said, on April 2, 2010 at 7:22 pm

    A body need not be confused by the significant hocus pocus in accounting. The concept and execution here is quite simple.

    Gruesome twosome loot $ 6 million in cash via Red Kite gold loan, which cost $ 600k in up front grease, and do it whilst touting 3500 ozs monthly production from Burnakura.

    Now, forget what it cost, Burnakura ain’t worth $ 3.7 million US and production, darn it what an unexpected VSE shock, is zero.

    The last $ 1.2 million owed to Red Kite is happily flipped off in 6 million worthless shares @ $.21, which Red Kite floods the market with, selling the last at rock bottom $ .085 to the boyz so they can restock their wholesale paper and run another poochie push another day.

    It should be noted that Earnesto Echavarria has seen his roughly $ 8.5 million “investment” dwindle to a whooping $ 2.6 million based on today’s bid. That is some serious capital loss and caused 100% by the criminal rubbish spewed by nefarious VSE types. On wonders mightily if retribution isn’t on that man’s agenda some day.


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