On Monday, IKN noted the very, very large difference of opinion regarding the Frontino Gold Mine between Medoro Resources (MRS.v) (Part of the Giustra&Keep Show, with fraudulent sycophant Cassandra marching to orders) that's trying to buy the mine via its liquidator and the Union and citizens living and working at the site who claim they are 'the true owners' of the mine. As well as the ownership dispute, the miners and their unions also charge MRS.v and friends of running a dirty tricks campaign, trying to label them as terrorists and all such stuff.
So on Tuesday, the Colombian government came out with...yep surprise.....a statement supporting the Canadian side of the spat and rejecting the Frontino locals' arguments. I mean, don't want to be labelled as FDI-unfriendly, do we? The next thing we know is that The Can of Corn is pumping this governmental statement for all it's worth and trying to breath life into the flailing share price. Here's an example, taken from this morning's 'Canaccord Morning Coffee' publication:
So what The Can of Corn is putting forth is the shiny-happy-holding-hands version, verbatim from the government of Colombia and its pally pals over at MRS.v (and EDV.to, of course). But what da boyz over at The Can of Corn know full well but daren't possibly put into print is:
But The Can of Corn can't go round telling the truth, y'see....what it has to do is pump as hard as it can before....oh looky!...the truth starts seeping out. It needs to pump hard now to get its underwater clients out and sold to you retail saps, so expect a few more rose-tinted proclamations from the shysters in the weeks to come. IKN confidently predicts that this story will all end in tears., so don't be one of the ones left crying, yeah?
So on Tuesday, the Colombian government came out with...yep surprise.....a statement supporting the Canadian side of the spat and rejecting the Frontino locals' arguments. I mean, don't want to be labelled as FDI-unfriendly, do we? The next thing we know is that The Can of Corn is pumping this governmental statement for all it's worth and trying to breath life into the flailing share price. Here's an example, taken from this morning's 'Canaccord Morning Coffee' publication:
Medoro Resources* (MRS : TSX-V : $0.68), Net Change: 0.05, % Change: 7.94%, Volume: 5,129,123 More gold for the MRS's? Medoro went on a tear in early trading on very heavy volume following news that the Colombian government supports its acquisition of Frontino. On April 5, 2010, the Colombian Minister of Mines and Energy issued a press release supporting Medoro Resources recently proposed acquisition of Frontino Gold Mines. The press release states that this transaction “clears the way for a better future for more than three thousand families in the municipalities of Segovia and Remedios whose livelihoods depend on gold mining. It further noted, “These negotiations are a demonstration of investor confidence in Colombia and, moreover, will result in social advancements for the region as well for the mining industry of the country." Frontino, which has been producing gold since the mid-19th century, filed for bankruptcy protection back in 2004, after gold prices fell, violence in the area increased, and the company's pension liabilities and payroll became unsustainable. Since then, the bankruptcy court has failed to find a buyer. On March 31, Medoro announced that they had agreed to pay about $200 million to buy Frontino’s assets. The payment will go to a fund to ensure full payment of all pension entitlements and payroll liabilities. The deal also insures the stability of the current workforce of the company; Medoro has agreed to continue to employ 1,600 workers for one year. According to Frontier’s legal advisor Luis Fernando Alvarado, the gold produced about 55,000 ounces of gold in 2009 from its various mines at an approximate cost of $400 an ounce. He also said that in 2009 the company posted net profit of $8-9 million. Medoro is a gold exploration, development and mining company with a primary emphasis on Colombia. It operates the producing Mineros Nacionales gold mine located in Zona Baja at Marmato and is conducting an exploration and infill drilling program at its Marmato Project to upgrade and expand its gold resources there. It also holds a 100% interest in concessions in Venezuela where working to obtain exploitation permits and has interests in gold exploration properties in Mali.
So what The Can of Corn is putting forth is the shiny-happy-holding-hands version, verbatim from the government of Colombia and its pally pals over at MRS.v (and EDV.to, of course). But what da boyz over at The Can of Corn know full well but daren't possibly put into print is:
1) The government of Colombia has no say at all in this matter. Not only is the case bound to end up as an ownership dispute in front of the Colombian judiciary, but said judiciary is totally separate from the country's executive. And to labour the point, the Colombian judiciary has shown time and time again over the past eight years that it's not at all afraid fo standing up to Uribe's bullyboy gov't and passing judgements that are embarrassing to the admin.
2) Ownership disputes of lands, properties, businesses etc can (and most often do) lasts quite literally years and years without resolve and can often get dragged through decades. In this case, there's a $200m price tag in play and that's a lot of moolah. Don't think for a second that a simple statement by a simpleton minister is going to decide this one.
But The Can of Corn can't go round telling the truth, y'see....what it has to do is pump as hard as it can before....oh looky!...the truth starts seeping out. It needs to pump hard now to get its underwater clients out and sold to you retail saps, so expect a few more rose-tinted proclamations from the shysters in the weeks to come. IKN confidently predicts that this story will all end in tears., so don't be one of the ones left crying, yeah?