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Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.

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Message: On Manipulation by ECU

On Manipulation by ECU

posted on May 13, 2008 12:17PM


Bearing in mind the recent posts about manipulation, I thought it useful to post an email response I received from ECU's IR agent last week. It appears ECU is also monitoring trading, so can we assume they havent as yet found anything to work on?

Other points:

A Hedge fund was also prosecuted for making use of a CDE placement to short shares in the private placement. Why is it these illegal transactions are being prosecuted? Is it because they are traceable?

Second. Jim Sinclair is acting as both a gold market advisor as well as being the owner and beneficiary from investors who buy shares in his gold-company. There is a conflict of interests. While his actions maybe totally inn order in that regard, it is knowingly putting himself in a difficult position. I dont see any evidence that consolidators are interested in all the hundreds of Canadian juniors that make up the Venture exchange.

Third. It is widely recognised that investment banks who act as market makers do so to create liquidity in the market. That is the function of a liquidity generating market maker (in fact the TSX is actively sponsering companies who create liquidity). This would also appear to be a feature of the London gold bullion market, while it would'nt have to be a feature in paper trading on Comex.

As I posted on S/House

As the volume of both TD and Blackmont trading on level 2 has been raised here. I wrote to investor relations asking for clarification on which companies are acting agents for ECU and which is market maker. Today I received a reply, and suggest anyone who would like further clarification on this issue do the same. However this is the content of the response verbatum.

Good Morning xxxx,

Several institutional shareholders that own ECUshares have purchased these shares through Blackmont and TD through both thePrivate Placement of last year and in the open market. As such, Blackmont and TDshould typically be the largest traders of our stock, both on the buy side andon the sell side. Unfortunately, in the current challenging equity market formining companies, there are an equal number of shareholders who will buy sharesupon a positive press release as there are who will use the press release as aliquidity opportunity to sell shares and take profit. ECU’s market maker is TD Securities and theyhave very strict compliance rules that restrict them from manipulating stock inany manner. Regardless, ECU is watching the trading of ourstock very closely and remain committed to investigating any aberrant behaviourin our trading. Best regards,





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