Here is a contrasting example of a stock YYY that trades over $4 on the OTCBB and has nothing to compare with ECU. It has just raised more funds to complete a mill and infrastructure with the expectations of becoming a producer this fall. It only trades 45 million shares but it has no production at this time and is awaiting environmental permitting for it’s leaching process of it’s open pit resource and it still has to spend tons of dough on its deep mining project. Tell me why it trades at $4 and ECU trades at 54 cents!

Wednesday, July 01, 2009
XXX Mining increases interest in YYY Corp to 23.9%


Underground mining specialist, XXX confirmed that it had exercised its option to invest a further US$20 million in US listed mining junior, YYY Corp (OTCBB:). The option allowed XXX to purchase 5 million shares in YYY Crop at US$4.00 per share – a 20% discount to the 30 day average closing price. Following the share purchase, XXX’s interest increased from 14.6% to 23.9%.


XXX stated that the investment provided additional exposure to high grade, low cost ounces in a mining friendly country (Mexico) and was in line with its strategy of a “cluster consolidation strategy”.

“We are delighted to announce this transaction which provides XXX further exposure to low cost, high grade ounces in the Southern Mexico, in line with our cluster consolidation strategy. We have been extremely impressed with the quality of YYY's assets and the speed at which the ZZZ property is being developed. This investment will enable YYY to complete the construction of the mine and plant as well as to further their exploration efforts.”


YYY Corp’s ZZZ Project in Mexico is expected to enter into production this year at a rate of 70,000 ounces of gold per annum, and will be a very low cost precious metals producer thanks to significant copper, lead and zinc credits in the ore. The mine will initially operate from an open pit before moving underground to exploit a rich polymetallic ore body.


In a separate announcement, YYY Corp said it would use 80% of the proceeds for project completion, startup and working capital needs. The remaining $4 million raised is earmarked for accelerated exploration at the ZZZ Project and accelerated development for the underground WWW deposit once the permit for the surface disturbance for the underground decline is granted.

Some of the proceeds will also be used for accelerated exploration at two other properties, Las OOO and El BBB. YYY Corporation further added that it was in discussions with XXX about the accelerated exploration of these other two properties.


YYY Corporation’s president,…. stated, “We are very pleased with the construction progress of our ZZZ Project. Mill construction continues with the final contractor, the mechanical/electrical contract, and with equipment arrival and installation. The tailings facility is nearing completion with over three quarters of the double lined facility finished. Overburden removal of the open pit continues at such a rapid pace that we have chosen to start the second phase of the tailings dam much sooner than originally planned. Our project manager and employees, as well as DDD Engineering and the construction contractors, are all doing an excellent job.”


Mr. …. continued, “We remain committed and focused on putting the ZZZ Project into production in the shortest amount of time possible with the fewest number of shares outstanding. We are doing just that. Though the federal permit timing is one aspect that remains outside of our control, and dictates our ultimate project timeframes, we are optimistic the final federal open pit permit will be granted soon as we have been given no indication to the contrary.”


And this trades at 8 times ECU????

What or who does XXX corp or YYY corp know that makes them so popular and priced far ahead of the whole JPM market????