The company's Fruta Del Norte gold deposit in Ecuador ranks as one of the best discoveries in decades. But its stock price was floundering because of the huge political risk in Ecuador and the lack of a firm mining code in the South American country.

The Ecuadorian government is working on a Mining Law that appears to be favourable to the companies, but that law is likely months away from reality, if not longer.

"And what if the Mining Law isn't favourable? Or what if it's only favourable to a corporation that can take on bigger risks than we can? There are lots of factors," Patrick Anderson, chief executive, said in an interview.

Meanwhile, Aurelian was going to have to raise money. And with a weak stock price and dreadful credit markets, such a deal would lead to huge dilution for shareholders.

Those are the issues Mr. Anderson and his board were weighing when they were approached by Kinross about a takeover.

Kinross was a logical buyer because it is working in EcuaFINANCIAL dor and has a proven ability to operate in politically risky countries. But the company still surprised many investors by offering $1.2-billion for Aurelian before Ecuador even puts its Mining Law in place.

"We just thought it was the right time as a balance for risk and reward, and at a price we thought was attractive to Aurelian shareholders and defendable to Kinross shareholders," Tye Burt, CEO of Kinross, said in an interview.

Other sources put it more bluntly: By daring to buy Aurelian before the Mining Law is in place, Kinross got a prime asset at a good price.

"If you wait until [after the Mining Law], Aurelian could be worth $15 a share and you'd be competing with everybody for it," said one source, who asked not to be named.

Aurelian shares closed at $6.30 yesterday, below the implied value of the Kinross offer, but some analysts maintain that another bid is highly likely.

Michael Gray of Genuity Capital Markets wrote that the Kinross offer "undercuts" the political risk in Ecuador and does not provide enough value to Aurelian shareholders. He raised his price target on Aurelian to $11 a share.

"We believe that Kinross's bid will be the start of a bidding war for one of the most coveted undeveloped gold deposits in the world," he wrote.

However, Kinross has a large advantage over rivals because it has already been well-received by government officials in Ecuador.

Mr. Burt said officials see the offer as "an endorsement" of the country's emerging mining industry.

"I think Kinross is well-positioned to work with the government in ways we never could," Mr. Anderson said.

"They've got experience in jurisdictions the Ecuadorian government quite likes such as Brazil and Chile, and a great [corporate social responsibility] reputation in those countries."

My comments : The truth is in bold and the lies are in italics. Notice most of the outright lies are from our CEO who is paid very well to protect our interests. So much double speak it makes me sick.