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by Stockwatch Business Reporter

The TSX Venture Exchange added 2.41 points to 1,019.85 Monday. Edward Ierfino's halted capital pool shell, Element 79 Capital Inc. (EMS), has completed due diligence on its qualifying transaction target, Canadian Gold Resources Ltd., and should submit a filing statement within a month, shortly after which it hopes to close the QT.

Last month, Element 79 held its AGM and shareholders approved changing the shell's name to that of its target. Following the filing statement, all that will remain will be approval from the exchange and a $1.2-million private placement of 20-cent shares. Canadian Gold has an option to buy the Pilar gold exploration property in Sonora state, Mexico, not to be confused with the developed Pilar gold mine in Brazil owned by Yamana Gold Inc. (YRI: $9.06).

The target's sole shareholder is Ontop Capital Ltd., a private company of which the largest shareholder is John Schiavi, who controls a combined 31 per cent directly and through a trust registered in New Hampshire. Mr. Schiavi, a businessman who lives in Florida, owns interests in nursing homes and real estate companies in the U.S. His last involvement with a Canadian-listed company was with Major Drilling Group (MDI: $9.12), where he was a director for 16 years until he resigned in 2010. Ronald Goguen, whose father is a co-founder of Major Drilling, is the chairman of Canadian Gold Resources and will become chairman of Element 79 once the QT closes.

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