wouldn't you think it becomes cheaper for Newmont and Barrick, their companies go up a lot more with this increase in gold than we did, they have more money to play with.

i don't think they are in any down mood over this when it comes to acquisitiosn.

***
Overall, it's a wash.  As the price of gold moves up, so does the acquisition cost.

I'm leaning more towards Fatmans' CVRD theory.  Frankly, I think CTQ and ARU should merge.  Maybe Dynasty as well.  The properties are contiguous and cover a vast area of known copper/gold mineralization.  Ideally, you would create a mid-tier copper company financed by the gold, but it looks like the govt. has other plans.  

Notice how quickly they've started "negotiations" before they even have a mining law?  My guess is they're panicked by the rise in the gold price.  If they don't lock down a windfall tax soon, this thing gets away on them.  But wait!  It's only ARU that has the gold, but they're talking to Corriente as well.  Therein lies the key.  With a windfall tax in place, the only buyer for ARU would be someone who also wants Corriente.  A package deal.  Ecuador gets the gold for its treasury, CVRD gets a massive copper project with credits for mining the gold, and all subsequent advantages that come with first-mover status.

Maybe I'm wrong.  I'm certainly no expert on these things - just following my intuition.  CVRD would be a soft sell, since they too are latinos.  To see why Ecuador would go this route you have to look at their financial position, which is not good.  Oil prices are up, but production is falling.  Inflation is rising quickly, the balance of trade is slipping, unemployment is high and dollarization doesn't seem like such a great idea now that the dollar is tanking badly.  

Oh, and they are down in the polls.  Never forget, these are politicians we're dealing with. The first job of a politician is to get elected. The second job is to stay in power once elected.  This never changes, regardless what color their politics are.  In real terms, this means satisfying voter demands, which are often impractical, and driven by short-term emotional considerations.

I really hope I'm wrong about this.  It's not the end of the world if CVRD takes us out.  It will certainly be at a higher price than the present, but it takes away all the fun of participating in what could be a great beginning for a struggling nation that deserves a better break than to have some mining giant roll in and start calling the shots.

Maybe that's the comprimise, though?  There are factions in the AP that don't want mining at all.  Maybe this was necessary to get them onside?  Instead of a wildcat free-for-all with juniors drilling the place out like swiss cheese, we settle for a couple of big mines, and revisit the equation somewhere down the road?  Something like what Australia did with uranium.

Again, I don't know - this is mere speculation on my part.  Maybe my naturally suspicious nature is getting the better of me?  Maybe I'll just shup up for a while until we see what happens.  Sure as hell is irritating though.  With gold pushing $900 Aurelian should be trading at least $12.  Likewise for Dynasty, which I also own.  Grrrrr!!!!

ebear