While the dispute over Ventana Gold Corp. prized La Bodega project in Colombia continues to simmer, there's fresh optimism it can eventually be resolved following news this week that Ventana had locked up 100% interest in mineral rights for the El Cuatro, La Suiza, La Itala properties.

"With this announcement Ventana has confirmed that it is continuing to successfully complete the mineral rights agreements that it has entered into with the majority of its Colombian based option agreement partners," said CI Capital Markets analyst Eldon Brown in a note to clients.

"This in conjunction with the multiple others agreements entered into by both Ventana and other companies active in the San Francisco gold camp should illustrate that the disputed option agreement for La Bodega, first reported November 27, 2009, should be seen as an exception, not the norm."

Ventana was one of the top performing stocks last year, rising from a starting value on Jan 1, 2009 of 30¢ to a high of $12.67 on November 19. Do the math, and that's a 3500% return in just 11 months.

Over the past couple of months, however, the Vancouver-based gold explorer with assets in Colombia, has fared less well. Indeed, the stock has tumbled nearly 40% since late November, on news that Socieded Minera La Bodega Limitada is seeking arbitration with Ventana over Ventana's prized La Bodega project in northern Colombia.

The dispute centres around the option agreement between the two companies under which Ventana is acquiring the La Bodega project from Sociedad Minera.

"While there is no update on the La Bodega dispute, we see [this weeks mineral rights agreements] as a generally positive development as it shows these agreements are getting completed and progress on the disputed agreement should be achievable, although it may still take some time," Mr. Brown wrote.

David Pett

Read more: http://network.nationalpost.com/np/blogs/tradingdesk/archive/2010/01/08/ventana-agreements-reason-for-optimism.aspx#ixzz0cA74yTEq
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