dukes,
The company issued a news release (see below) a few years back confirming no direct exposure to non-recourse loans. I haven't checked recently, and although the debt figure has increased since then, I doubt there has been any material change on this matter. Always do you own DD of course.
ECU showed some excellent strength this morning, and just when it appeared we would clear the 50 DMA and all important $1.20 level, the sellers began hitting the bids and knocking the share price down one cent at time before Canacord really lowered the hammer late in the afternoon.
I think gwr and ESL have explained this action well. The algorithms won the battle today, but I doubt they will win the war.
Today's action certainly tested the patience of the most committed long.
sketch
ECU Silver News Release
TORONTO, ONTARIO--(Marketwire - Aug. 20, 2007) - ECU Silver Mining Inc. (TSX:ECU) -
ECU CASH INVESTMENTS HAVE NO DIRECT EXPOSURE TO RECENT CREDIT CRISIS
The current global credit crisis has many investors concerned about the short term investments of cash resources by public companies and in particular, the liquidity of these short-term investments. ECU Silver Mining Inc. ("ECU") is pleased to report that its positive working capital and excess cash have been invested in short-term certificates with National Bank Financial in Canada and Scotiabank Inverlat in Mexico. The total amount of these invested funds are immediately redeemable at any time.
ECU HAS NO EXPOSURE TO JOINT VENTURE RELATED NON-RECOURSE LOANS
Certain articles have been written regarding companies with exposure to joint-venture related non-recourse loans. ECU reports that it has no major company joint ventures and as such has no non-recourse loans with a major company on any of ECU's mineral exploration properties. In addition, ECU has no hedging contracts and/or derivative contracts in place. ECU has a joint venture agreement with Golden Tag Resources Ltd. ("Golden Tag"), a junior exploration company, on the San Diego property. There are no non-recourse loans between ECU and Golden Tag. ECU maintains only one debt facility for US$12 million which has standard debt covenants and no direct hedging or derivative exposure. The loan facility is with IIG Capital of New York.
EXPLORATION UPDATE
ECU is currently working on building a 3-D geologic computer resource model which will serve as the basis for the updated 43-101 technical report and for the pre-feasibility study. All historical assay information received to date have been input into the geologic resource database and data correlation interpretation is underway. A more detailed update will be provided in the near future.
FOR FURTHER INFORMATION PLEASE CONTACT:
ECU Silver Mining Inc.
Stephen Altmann
President
(416) 644-8640
(416) 644-8801 (FAX)
Website: www.ecu.ca
