National Post, 16 June 2007
The resignation Thursday of Ecuador's energy and mines minister could be a positive development for Canadian mining companies with projects in Ecuador.
Albert Acosta resigned after deciding he will run for election to a new 130-member legislative body that his political ally, President Rafael Correa, hopes to win a majority in thus providing a counterweight to the country's Congress.
The news spurred on share prices of Canadian mining companies with projects in the country, including Aurelian Resources, whose shares have jumped 6% since Thursday and Corriente Resources, up as much as 12%.
According to Wellington West analyst Catherine Gignac, Corriente, who awaits government approvals for its Mirador project in Ecuador, could turn Mr. Acosta's resignation into a real opportunity.
"The Minister is known to oppose mine development," she said in a note to clients. "The replacement is expected to be pro-mining and could bring Corriente Resources back to develop Mirador."
Ms. Gignac has a "buy" rating on Corriente shares and a $7 price target.
David Pett
dpett@nationalpost.com
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