Consistency & Managerial Strength at Coro Today's deal is one of several deals that Coro has executed over the last few years to enable it to survive. I see a distinct pattern of Coro being able to sell projects for cash to very large mining enterprises. Today's deal only assures Coro of $ 150,000 in cash. This deal is with a very large Mexican operation. The deal relinquishes Coro's control over a non core asset at a time when finding cash is difficult in the junior mining sector and this was done without dilution. Moreover if the project works out Coro makes money and if the project does not work out for the new partner on a very large scale and it reverts back to Coro sometime in the future, Coro being a smaller company may be able to economically mine the very high grade mineralization that may be limited in area.
Coro knew about this high grade mineralization in 2009 and just now pull it out of their bag of aces when a deal is needed. Going back, Coro has sold a Mexican property to Lumina, a Chilean property to Teck and recently made the San Jorge deal with the Russians. This is not counting the current project with Pro Pipe. These deals that have kept the lights on at Coro while Coro rebounded from the shock of San Jorge, have given Coro the time to give management a chance to build a company.
Coro is a real company, ( as opposed to the typical junior that might be likened to a slobbering Benton) with exceptional management and real prospects. It seems clear that the recent drop to the 2 cent level per share is a result of the failed shenanigans of Sheldon Inwentash and Pinetree. I dont know what Coro should be selling for given that they have not finished anything yet, but at these low prices, thanks to Pinetree, the risk reward aspects are especially favorable.
Its a bit much to expect every company to be successful just because you buy their stock. What I expect is a company with competent management focused on the job at hand and determined to get it right if at all possible. Coro meets every bit of those expectations and I am optimistic that they are positioned to get it right. Conversely, I think its hardly fair to expect a Stephen Stares to ever buid a mine. I wouldn't expect that of a monkey either. Even a really smart monkey. However it is really possible that Stares will exceed the efforts of any monkey known to man and actually build a mine. Coro is a much cleaner nicer bet.
Canada Moose