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Here is another quick update for those of you (like me) who have invested in Petaquilla Minerals. I received an email from PTQ’s investor relations today with a new nugget of information of which I will discuss briefly below. I also would like take a moment or two and review PTQ’s pricing action since my last update.

I did my last PTQ update on July 1st, 2010 and a Petaquilla (PTQ) Chart Analysis on 6-10-2010. Petaquilla managed to work its share price down to about .30 cents which was close to the bottom I forecasted in my chart analysis. The share price then moved back up a bit  to trade in a range of about .33-.35 cents. I hope you found the courage to dollar cost average down at those cheap prices. You must remember, the summer months are typically the weakest periods of the year for gold & silver.  It is a perhaps one of the best times to load up on gold, silver, and related mining stocks. I definitely took the opportunity to by more PTQ shares in the .30 cent range.

Petaquilla’s stock price has now rebounded nicely back near the levels of when I first recommended them in my Petaquilla Minerals Junior Stock Trading Card. There has been no news about why the price dipped down to .30 cents or why the price has now rebounded back to the .46-.50 cent range. Unfortunately, few people seem to understand why. With so much silence these days on behalf of Petaquilla, people are starting to talk and come up with their own explanations for the recent rise in PTQ’s share price.

Some of my readers have sent me links to various stock forums where folks are discussing buyout possibilities and such. I don’t believe we are there yet. I think Petaquilla will eventually get bought out, but not until more is known about their Oro Del Norte concession. Any potential buyers I think would be very interested in confirming just how much gold is in Oro Del Norte as well as what type of grades. Until more is known, I don’t think a buyout is in the cards just yet. It could be, but not very likely at this point.

I believe PTQ’s price rebound has more to do with the status of their gold loan refinancing. The slowly increasing share price is likely an sign that something good is cooking beneath the surface. To me it implies that confidence is growing in the completion of  the gold loan. Perhaps it is nearing completion or it has been informally approved by all the banks involved. I think this is more likely than a buyout at this point. It could also be that some of the drill results from the Oro Del Norte concession are leaking out too. Who really knows but the guys on the inside?

Here is the response I received from Petaquilla’s Investor Relations this afternoon:

The refinancing is coming along very well, we are waiting for the Panamanian banks to finish their due diligence in order for them to participate and be part of the package.

We should be close to finish this transaction in the following weeks if not sooner.

Apparently there are multiple banks involved, of which some are Panamanian. This definitely explains why it is taking a while to wrap everything up. So I would not expect this to be done by tomorrow or roughly anytime “soon”. I bet we are talking sometime in late August or early September before the gold loan is completed.

I firmly believe this stock is going way up before the end of this year and I plan to keep accumulating PTQ shares while the price is still heavily discounted. As always, please do your own due diligence and only invest money you can afford to lose. Also understand that stock investing is not the same thing as a savings plan.

Related Posts:

• Petaquilla Minerals Financing Update
• Petaquilla Minerals Update- 6-15-2010
• Petaquilla Minerals Update 6/02/2010
• Petaquilla Minerals Update – 5/10/2010
• Petaquilla (PTQ) Chart Analysis 6-10-2010

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Disclosure: I have not received any compensation from Revett Minerals, Timmins Gold, Metanor, or Petaquilla Minerals. None of these companies are advertisers on GoldStockMania.com. I am extremely bullish on Petaquilla, Timmins Gold, & Metanor and currently hold shares.

Disclaimer: I am not a professional/qualified investment advisor. Readers should note I am not responsible for errors or omissions in this report. Also, I am not responsible for your trading decisions as you should do your own due diligence before making any investment decisions.