The financial results reflect the Company's decision to generally suspend its activities in Ecuador at least until the Government of Ecuador establishes its new policies towards foreign companies regarding mineral exploration and mining. In the interim, the Company's limited expenses in Ecuador are currently aimed at protecting its interests there to the extent possible. The Company has begun to implement a pro-active development strategy outside Ecuador.
The Company recorded a loss of $128,949 for the three months ended June 30, 2008. The Company's working capital was $1,503,555 at June 30, 2008. The Company has sufficient working capital to meet all of its foreseeable obligations based on its plan for the next twelve months.
In March 2008, the Company focused its Ecuadorean exploration targets on the most promising concessions and anomalous areas within the Company's property portfolio. It thereby reduced its annual patent payments and its property portfolio by 39,600.90 hectares. The Company's total property portfolio in Ecuador as of June 30, 2008 was 53,751 hectares, subject to any future ramifications of the April 18, 2008 Ecuador Mining Mandate and related mining laws under development.
Subsequently, in July 2008, the Company's Ecuadoran lawyers were notified that the Government had cancelled seven of the Virgen del Cisne concessions totaling 17,787.30 hectares and the San Andres concession within the Pangui Property consisting of 350 hectares. Consequently the Company's total property portfolio in Ecuador as of August 25, 2008 is 35,613.70 hectares. -- www.cnxmarketlink.com
