Apella Resources Inc. (CVE:APA) (PINK:APAFF) opened 38% higher today under the influence of the recent court decision to grant Apella right to nine mining claims.
Quebec Court, Mines Tribunal, Administrative and Appeal Division made a favorable judgment granting Apella rights to all the disputed mining claims in the Lac Dore Vanadium-Iron-Titanium deposit. Together with previously acquired rights the company now holds 95% of the 100 Mt deposit. The Lac Dore was previously held by the Province of Quebec as a crown asset.
The company sought rights to these claims since mid-2007 and one competitor managed to acquire two claims in the process. Apella’s CEO referred to Lac Dore as the world’s second largest vanadium deposit, though the extent of mineral resources present on the property is actually conceptual, as detailed exploration was never carried out. Feasibility study done in 2002 suggested the property is fit for production of vanadium.
Apella owns Iron-T and Lac Dore North Vanadium-Iron-Titanium projects nearby, so this acquisition simply expanded their ownership in the area. On Monday the company also announced that in March, 2011 they will begin the next phase of diamond drilling on its Iron-T Fe-Ti-V deposit. 23 holes will be drilled at 100 meter length each.
Apella doesn’t have impressive amounts of working capital and has been holding back on the size of funding deals to date. With the new properties in sight, much larger funding rounds should be expected, accordingly raising the company’s worth.
