By Bob Moriarty
321Gold.com
Recently someone brought to my attention an interesting David vs. Goliath situation going on in Ontario between tiny Sanatana Resources (STA-V) with a market cap of $4 million and giant IAMGold (IMG-T) with a market cap of $1.59 billion.
Sanatana did a JV with Augen Gold Corp in February of 2011 on the Watershed Project in Ontario. Terms called for Sanatana to issue 5 million shares and pay $150,000 to Augen in addition to a $5 million dollar work commitment to earn 50% of the 7904-hectare project. STA can earn an additional 1% by finishing a prefeasibility study.
Sanatana has actually spent $9 million on the project in ground mapping, magnetic surveys, airborne mag and over 17,000 meters of core drilling to complete their 50% earn in.
In November of 2011, Trelawney bought Augen for $65 million. In June of 2012, IAMGold picked up Trelawney for $608 million. So now Sanatana has a new JV partner on the Watershed Project named Trelawney/Augen but owned by IAMGold.