Aurelian donwplays government grab in Ecuador

News from Ecuador saying the government is considering a 70 to 80% grab on the earnings of foreign mining and oil companies hit miners with major assets in the South American country hard.

In Toronto on May 25 Aurelian Resources (ARU-T) saw its shares fall close to 12% or $3.85 to $29.25 on nearly 4 million shares traded after the news hit the internet.

Agence France-Press (AFP) reported on May 24 that the Ecuadorian government is creating a constituent assembly to reform laws around foreign investment that would allow it to take the massive chunk of earnings.

Despite the announcement, a government minister told the news agency that the government isnt planning on nationalizing the two sectors.

Both Aurelian, and fellow Ecuadorian explorer Dynasty Metals and Mining (DMM-V) issued separate releases downplaying the news.

Dynasty shares were off roughly 4% or 20 to 5.90 on 311,000 shares traded.

Aurelian said in its statement that it was trying to have the government clarify the matter since the story runs contrary to the government’s earlier statements that confirmed its desire to build a mining industry in Ecuador and create a stable environment for foreign investment.

In its release Dynasty says it doesnt believe there is any basis to the report.

Aurelian was one of the biggest mining stories of last year because of high-grade intersects at its Fruta del Norte discovery in the heart of its Condor Project in south-eastern Ecuador.

Dynasty has two advanced-stage projects — Jerusalem and Zaruma as well as an exploration project in the country known as the Dynasty Copper-Gold Belt.