It certainly hasn’t been a dull period since being engaged by Evolving Gold (EVG-TSX-V) I won’t fool you or myself by saying it’s been clear sailing from day one. For starters, hindsight shows I became involved too early (but I sooner be a year too early then a day too late). Management hasn’t exactly been showered with love by shareholders either.

However, today’s news of a “current” board of director suing the company for not being paid some sort of finder’s fee is not only bizarre but helps explain (at least to me) the past few days worth of trading (which was impacted in part by this director’s selling of shares he obtained by exercising options). Without any news, such a large sale was definitely a reason for shareholders to be concern but in the light of this news, is at least to me no longer a negative. Yes, a lawsuit, no matter how frivolous it may be (and in this case it appears absolutely silly as no board member can expect to receive compensation as a finder as it goes against regulations), is never good news but from everything that’s known at this time it doesn’t appear to have any real legs.

In the meantime the company also announced some damn good results from their “other” project in Nevada. A lot of companies would be happy just with this project but EVG has one heck of a project in Wyoming already so this news is just more icing to the cake in terms of potential.

While EVG does have some investor relations baggage, some deserving and some not, the gold in the ground in both projects doesn’t care about this. Given the share price and what we now know about the projects (that includes a strong treasury); I believe EVG offers the best upside potential since I first put it in the portfolio. It would not surprise me to look back a couple of months from now and see the lows were made around this news event.