Explanation of action in Etruscan (EET.TO)
[ Well, SORT OF an explanation ... FL ]
Mali discovery helps Etruscan
Firm has several gold prospects in five West African countries
By BRUCE ERSKINE Business Reporter-- Halifax Chronicle Herald, June 30, 2006.
A recent announcement by Etruscan Resources Inc. of Windsor about a significant new gold discovery in Mali, West Africa, was behind a sudden jump in the company’s share price, says company vice-president Tony Hayes.
"It’s a slow-dawning process," he said in an interview Wednesday.
The Toronto Stock Exchange asked Etruscan on Wednesday to issue a statement on its stock price, which Mr. Hayes said jumped from $2.34 a share on the TSX Venture Exchange Monday night to $3.25 a share Tuesday.
Shares traded for $2.65 Wednesday.
The company said in its statement that "no undisclosed material changes in Etruscan’s operations, finances, management or strategies have occurred to cause significant short-term share price appreciation."
Mr. Hayes said such requests are made by the exchange when a stock price jumps by a certain percentage in a short time period.
He referred questions on the details of those provisions to the TSX, which did not return calls on the matter Wednesday.
On June 5, Etruscan issued a release saying it had made a significant discovery 15 kilometres south of the Sadiola gold mine in Mali. Etruscan COO Don Burton said in the release that the discovery was the most exciting prospect the company had found in 12 years of exploring in West Africa. Mr. Hayes, who noted that Etruscan stock jumped about 45 cents a share at the time of the June 5 announcement, said company officials have been providing details about the Mali find since then.
"It is a significant discovery and the more we tell, more people are realizing it is significant."
Mr. Hayes said sudden stock price swings aren’t unheard of, referring to the stock price of Aurelian Resources, a Toronto company exploring for gold, silver and base metals in Ecuador, which saw its share price jump from 80 cents in April to $23 in early June.
Aurelian stock traded for about $17.30 a share Wednesday.
Etruscan has interests in several gold prospects in five West African countries.
It is also involved in diamond mining in South Africa.
( berskine@herald.ca)
