U.S. Gold has a 13.5% stake in Atlanta and was looking to take control of the company with the help of VenturesTrident Ltd., a Denver- based firm which controls a 12.67% equity holding.
According to Atlanta Gold, shareholders voted in favor of management and against the U.S. Gold/ VenturesTrident dissident slate, however the validity of some proxies is now being contested by U.S. Gold in a petition filed with the Supreme Court of British Columbia.
Jean Nantel, president and chief executive officer, said the objections are “without merit” and Atlanta intends to co-operate to secure a hearing into the matter as soon as possible.
Nantel added that management intends to continue to explore “all avenues to increase shareholder value” within the restraints imposed by the litigation.
Atlanta recently retained Bear Stearns & Co., a U.S. investment banking firm, to seek out a joint venture partner for its gold project or an outright buyer of the company.
Its main asset is a 100%-owned and metallurgically-complex gold project in Idaho which has reserves of 8.27 million tons grading 0.087 oz gold per ton in the East pit, and 6.2 million tons grading 0.049 oz gold in the West pit. A recent feasibility study recommended production for the East pit reserves. Capital costs for the first phase open pit operation are estimated at $41.64 million(US).
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