Does Otto seriously think that a deal with Ecuador is a preferred course with no risk? Petro Ecuador is not how we want to end up - who then would buy our shares? Correa and the political powers in Ecuador are why we are in this mess and you want to give control to them?

1. The nation in which you operate is always the one in control. It's just a matter of degree.

2. Resource nationalism is a well established trend that isn't going away any time soon.

I call it a wash. You're going to be facing what we've already been through to one degree or another, no matter where you go in the world, and it will only get worse as time goes by.

The otto deal sets a whole new precedent. Instead of fighting a battle you ultimately can't win, or selling out for a discount to someone who'll be facing the same odds as you, you make a deal. You become part of their equation, rather than an outsider whose presence could shift from welcome, to tolerated, to unwanted, depending how future political winds shift.

I say this as an investor, not as a quick flip artist. If you keep telling people your goal is to sell, then they'll just keep offering you a low price. If, OTOH, you say...nawww, we're quite comfortable where we are and prefer to build a mine in cooperation with the new progressive govt. of Ecuador, then it sends a clear message that this is a govt. you can not only work with, but that you expect will be around for a while.

It also sends a message to the people of Ecuador that they finally have a govt they can take seriously, and can get out from under this revolving door presidentialism and "partidocracy" they've been burdened with for years. Trust me on this. If they see private investors approach their govt in good faith with this sort of offer, they'll be beaming with pride. No need to hold the govt. to their side of the bargain. The people will do that for us

In the big picture, it solves quite a few problems, both for us, and for them. For them, it opens the door to future investment and washes away some of this faux risk that the market keeps hyping up, making it easier for other deals to go through. It sets a baseline for working with the govt. along the lines you see in Chile - the Codelco model - which they've already studied. Finally it gets them some much need gold for their treasury at a time when they face yet another currency crisis, this time from a collapsing US dollar.

The benefits to us should be obvious. We become an established tour de force in Ecuador with the chance to explore the entire district, plus any other opportunities that become available. We can generate new projects and JV them with other co's, or develop them ourselves, all with firm govt. backing and a ready supply of credit at favorable rates. Can't beat that with a stick.

I say support the deal, or at least start discussing it, instead of endlessly picking apart this K deal which stinks on the face of it.

Institutions, funds, and large private holders that want to discuss this proposal, I'm right here. Or you can contact Otto at Inca Kola News.

Let's start talking.

ebear