national posthttps://communities.canada.com/nationalpost/blogs/tradingdesk/archive/2007/05/25/aurelian-shares-down-on-speculation-of-ecuador-earnings-grab.aspx
Aurelian shares down on speculation of Ecuador earnings grab
Shares in Aurelian Resources Inc. (ARU/TSX) are down as much as 14% Friday morning, on speculation that Ecuador plans on reforming laws regarding foreign investment in the country that would allow it to assume as much as 80% of the earnings from the oil and gas mining sectors.
If the rumours prove true, Aurelian would stand to lose considerably as its current gold and other mineral exploration acitivities, including the wholly-owned Condor project, are situated entirely in Ecuador.
According to Stratfor, a U.S. based analysis service, Ecuadorian government minister Gustavo Larrea, who was president Rafael Correa's campaign manager, said Thursday private companies holding majority stakes in oil or mining operations will be left with 20 percent to 30 percent of the earnings following the reforms.
Despite this announcement, Larrea said Ecuador does not have any plans to nationalize the two sectors, Stratfor reported.
In response, Aurelian has released a press release stating the news has no basis.
David Pett
dpett@nationalpost.com