Well, given the gold markets it could potentially be a boon. Colombian political risk is way down under the Uribe reforms, and Colombia has a very pro-company mining code now. Certainly, its a good time for COlombian miners these days.
However, the reason the prices are so low is because junior miners are seriously high risk. The comapny has not made any money yet, of course, as it is transitioning from a hopeful exploratory company into a hopeful producer of gold and otehr minerals. The price is also very low becasue there is concern about whether or not the company actually intends to produce anything at all, or is it a pump and dump. The price has reached its historic lows recently as it has resorted to additional stock issuances to gain additional funds to continue its operations, so there is massive dilution. The company also does nto answer its phone nor return emails, which doesn;t help sooth concerns.
So..... high risk. If its the real deal , it will eb a major money maker. If its not, kiss that money goodbye.
As for timing of entry, no one knows how many diluted share issuances are left. It does appear that "news" comes just at the beginning of another round of dilution and falling share prices.
So, I would treat it as a megamillions lottery ticket. I lost about $3K on this sucker so far, becuase I took the gamble that the financing would be based on mine production rather than share issuance (it is partly so, but mostly share issuance). I was wrong and my timing was wrong. But, so it goes. I still like the prospects of a Colombian gold play, but we just do nto know enough at this point to KNOW that this is a legit company. It could be, and it could not be. That is why it remains a gamble, and the price reflects this.
AI
