Still going for the sale. Who doesn't have a "Plan B"??As promised.....
Good Morning Cathy,
I was hoping you could take a moment to answer a few questions I have about Ecuador Gold and Copper (EGX). I have read the interview released yesterday between Financial Press and Mr. Laing. I noticed Mr. Laing makes several comments indicating that the recent news in Ecuador will bring renewed interest on our project, which led me to think that we are looking for a buyout as an end result. The buyout scenario has been long thought to be the goal. Then there were a few statements made that also indicate that the direction we are going in is to joint venture the mine with a mining company. Could you give me an idea as to what the wanted result for EGX may be? I thought I read in a previous report that Mr. Laing had stated that EGX had already turned down "lowball" offers on the site. If so, could you release that kind of information? Price offers, time frame etc.. As of right now, there doesn’t seem to be a lot of overhead with EGX but if we were to go into mining, how would EGX plan to raise capital? If we go into mining, we would be looking at close to 2 years before we would see the mining operational and, hopefully, turning a profit?
Answer:
Hello Brendan:
Thank you for your interest in EGX. An outright sale has always been EGX's plan - this is the Canadian Junior Model - get a good property drill it, build the resource and sell it. Except EGX found an elephant that is a lot more valuable and commands a higher price but the number of potential buyers are fewer.
However you do have to have a plan B and that is to keep the project moving forward - adding value by putting better engineered numbers on it - hence the PEA. This is due out in November.
When you think about a plan B you have to think about how you are going to fund the hundreds of millions of capex. Again the Canadian Junior model is to bring in a major Joint Venture partner and be carried to production.
And as the political situation and the investment climate improves, the number of potential suitors improves and so does the value of EGX.
For EGX it just gets better! And the exit is either at a much higher share price or carried to production with the help of a major mining operator.
This is a win win situation for shareholders.
I hope this helps Brendan.
I'm happy with this response!!! Good luck Ladies and Gents!