RE:RE:RE:RE:RE:Question to the active investors in this region?Hi Tottenham,
Actually, EOM is a Canadian company, so the arbitration would fall under the Canada-Colombian free trade agreement. The agreement protects against uncompensated expropriation. I'm told such arbitration takes about a year to go through the process (unlike a lawsuit, which can be tied up for years). So the absolute worst case is that EOM has significant wrapup value even if a mine cannot proceed.
However, I doubt if it will come to that. When the Colombians announce the Paramo coordinates they will have to trim EOM a bit to save face, but will leave enough on the table to work with. Then at some point, negotiation, and, if that fails, arbitration will have to resolve what value has been lost by the introduction of the Paramo constraints. Bear in mind the open pit concept encompassed about 15 million ounces in situ. We are now down to about 5 million underground (indicated and inferred), with 2.7 million recoverable. That's quite a hair cut from 15. Also, the park put some of our hinterland property off the table. I'm not sure how to value unexplored land, but the loss of rights is a loss of some value too.
There are also the satellite properties, such as Mongora, that are showing color. So the EOM story is a long way from finito. Patience now is the key. There will have to be a funding, of course, because the current burn rate only takes us out a year or so, but I'm hoping the forthcoming announcement will drive up the price as it has in the past. And if there is no announcement soon, you can count on the arbitration being initiated.