Athona Mines (1937) Ltd. is now defunct and its name has been changed to New Athona Mines (COATS). It trades on Ontario’s unlisted (over-the-counter) market, but has been relatively inactive recently.
New Athona is a junior exploration company or “penny stock,” and doesn’t own a producing mine or have any cash-flow at present, although it has working capital of about $38,000. The original Athona was incorporated under the Ontario Companies Act back in 1937 to explore some gold properties near Lake Athabaska, in northern Saskatchewan and Great Bear Lake in the Northwest Territories.
Following a corporate reorganization in 1955, Athona Mines (1937) Ltd., changed its name to New Athona Mines. The authorized capital of the company was reduced on the basis of one new share for four old shares. If you have an old Athona certificate, apply the above share exchange ratio to determine the value of your current holdings.
Contact the company’s transfer agent, Central Guaranty Trust, if you deem it worthwhile to exchange your certificate. To sell it get in touch with a stockbroker.
The shares of New Athona were last traded on COATS at 8 cents per share with the current bid price at 5 cents per share. Last year, the company’s shares had a trading range of 3 cents -20 cents on total volume of 66,738 shares.
Without knowing the exact number of shares you own, we can’t tell you the current value of your certificate. But unless you own more than 10,000 shares, it’s probably not worth much at present.
New Athona currently owns some mining claims near the shutdown Sherman iron mine near Temagami, Ont. But the value of that property doesn’t look too promising at present since Dofasco, owner of the Sherman mine, announced its closure this year.
In northern Saskatchewan, the company retains a 20% net profits interest in 12 gold leases being explored by Greater Lenora Resources. The remote location and low grade of the that gold deposit makes production unlikely at the current gold price.
New Athona also holds some shares in a private company called Viking Yellowknife Gold Mines, which optioned a Northwest Territory gold property to Canamax Resources last year.
Additional information on New Athona can be found in The Canadian Mines Handbook which is published annually by Northern Miner Press Ltd. Copies are available at most libraries, or you can purchase your own copy for $39.
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