News

June 25, 2009

Patagonia Gold Could Be On Track To Repeat The Success Of Brancote Holdings, As It Works Up Its Esquel Project In Argentina

By Charles Wyatt

When, in very difficult times, a company carries out a placing and directors take up most of the stock it is clear to all and sundry that they know they have an asset which is totally undervalued and which they want to retain for better times ahead. Thus it was with Patagonia Gold back in October 2008 when the market was imploding. The company placed 41 million shares at 4.5p to raise £1.845 million to finance working capital and exploration expenditure. As a result of this placing the holdings in the company of the Argentinian directors and their family associates rose to 52.3 per cent. It is this connection between the Miguens family and Patagonia Gold which is key to the success of the company - its operations work smoothly in Argentina and there is money in the background.

Carlos Miguens Bemberg, to give him his full name, is deputy chairman of the company and a descendant of the wealthy Bemberg family which founded Cerveza Quilmes back in 1888.  This brewing company is now one of the biggest in Argentina and he has been President for a number of years. He was also a director of the Argentinian subsidiary of Brancote Holdings well before it was sold to an American mining company called Meridian Gold at a hefty profit.  Meridian subsequently made a...