Aurelian stock tumbles on changes in Ecuadorian mining rules

Last Updated: Friday, April 18, 2008 | 4:31 PM ETComments1Recommend1

CBC News

A government move to delay mining in Ecuador knocked shares of Aurelian Resources Inc. down by nearly 32 per cent on Friday.

The stock fell $2.32 to $5.04 on heavy volume in late-afternoon trading on the Toronto Stock Exchange, setting a new 52-week low. That brought the shares' two-day drop to $3.55.

Aurelian three-month trading.

Aurelian shares — and stock of other mining companies with interests in Ecuador — fell during the week as concern about the government plan built. But the stock nosedived even more sharply after the Ecuadorian legislature passed a "mandate on mining" on Friday afternoon.

The mandate will stop mineral exploration for six months while the legislature develops other new rules for mining.

Aurelian said late Thursday that it didn't know what the impact of the mandate might be, but investors had already concluded it wouldn't be good.

Aurelian is a mining development company focused on Ecuador. Its Fruta del Norte discovery holds gold and silver.

In a year-end statement released in March, president and CEO Patrick Anderson said the company was beginning to set the stage for production from Fruta del Norte, moving it "toward our goal of becoming a mid-tier producer by 2012."

Before Friday, Aurelian shares had traded between $5.55 and $10.53 in the past year.

Corriente Resources, which is developing the Mirador copper-gold operation in Ecuador, feel 50 cents to $4.10 on Friday on the TSX before trading in the shares was halted; trading did not resume before markets closed. The stock lost 89 cents on Thursday.