EC updateJust spoke to Daniel in London, Nice chap very helpful – summary of the conversation (Hope I recall it all – so apologises if its not 100% on the nail)
Brasil – there is NO litigation going on. He did say that the JV partner is a difficult chap to say the least and that he could well be the source of all the Inkacola articles. Daniel was confident that Ecometals have paid their side of the contractual agreement and have all the permits for the property; he also mentioned that he is happy with the contract and if the JV wanted to litigate the contract he would have to do this in the UK courts. So to summarise he’s entirely comfortable with the situation. He’s hoping to sell some of the stock piled ore this quarter and then move on to mining and refining later.
Condor – he has been in conversations with the agreed buyer yesterday and from these conversation he is expecting the agreement to settle in 10 days – however a further delay could occur, but based on the correspondence with them he appears confident that it will settle at some point.
Share sell off – he has absolutely no idea why the stock price dropped yesterday, the only possible reason could be that someone wants in at a lower price and is prepared to play funny buggers, it was high volume so it’s a big question mark from him
RioZarca – he said that that RZ was an entirely blind target which was heavily faulted so they never 100% knew what the best terminal depth would be – it was more just see how they went. Once they reached the maximum drill rig capacity depth for the first hole – they could either wait for approximately 3 weeks for the BQ pipes to arrive in Ecuador and pay waiting fees or move on to the next target and drill, they can always go back to the 1st target when the BQ pipe arrives. So I 100% agree that mgmt did the right thing. Assays are not in yet neither are they finished on the 2nd hole. So no news on this side.
Funding – he couldn’t give me an indication on approximately how much cash they had – however he was waiting for the warrants + sale to happen – if that fails then they will need to go into the market and raise funds.
Having spoken to the chap I am entirely comfortable with my holding and mgmts ability to execute what they said they will do – yes there is downside however even with their existing properties the company is fair valued in my opinion at about 70c share. So it’s a no brainer – take a 30-40% short term hit or potentially be involved with FD2 discovery.
regards