Decoin

COPPER MESA DELISTED FROM THE TORONTO STOCK EXCHANGE!!

czorrilla — Tue, 23 Feb 2010 17:12:54 +0000

Last Friday (Feb. 19) was the last trading day for Copper Mesa on the Toronto Stock Exchange!!!
(español/inglés)
As most of you know, on January 19 of this year, the Toronto Stock Exchange took the decision of delisting Copper Mesa Mining Corporation from the exchange.

Interestingly, the company did not appeal the TSX’s decision, and is now trading on what is known as the Pink Sheets (Over the Counter Bulletin Board). This is the least prestigious place for companies to trade their shares, since it is a completely unregulated marketplace (much, much less so than even the barely regulated TSX). Most companies here either are pirate companies, or are very close to bankruptcy (and/or were unable to comply with regulations in other stock exchanges). In other words, unsavory, high-risk enterprises.

In real terms, what this means that it’s all over for Copper Mesa. They will not be able to raise capital, and will likely soon file for bankruptcy. For us it means they will not be able to keep funding the social havoc in our communities, nor violate our rights anymore. On a more general note, it sends a powerful message to other communities fighting mining projects that a delisting like this is indeed possible.

In spite of such fantastic outcome, we are concerned by the presence of a pseudo agricultural company using a couple of the company’s properties within the mining concession. The company, Schwarz and Drouet, offers services to the oil industry, and has hired a few of Copper Mesa’s old employees, plus has been given away some small gifts to the locals. Their presence is probably meant to keep a low-profile presence in case the mining project is reactivated. In such scenario, they’ll be able to sell their land to the new company. The use of the land by this company also makes it harder for the communities to invade it, or the local government expropriate it.

Thank you again for the role you played in helping us achieve this amazing, and transcendental victory.

Carlos Zorrilla
DECOIN

FIN DE COPPER MESA (Ascendant Copper)
El día viernes 19 de febrero fue el último día que la empresa minera Copper Mesa Mining Corporation cotizó sus acciones en la Bolsa de Valores de Toronto. La bolsa tomó la decisión el 19 de enero del año en curso de prohibir la cotización de las acciones de la empresa canadiense, supuestamente por incumplimir con requisitos de la bolsa. Una de las consecuencias de este singular triunfo es que se la hará imposible para la empresa captar más dinero en dicha bolsa. En la actualidad, las acciones están siendo negociadas en lo que se denomina los “Pink Sheets” (o: over the counter), un tipo de mercado donde cualquier empresa puede negociar sus acciones sin el más mínimo control de parte de entidades gubernamentales. Estos espacios son la última opción para empresas que están en vía de bancarrota, o que fueron expulsadas de otras bolsas de valores. Por ende, ningún inversionista serio va a invertir en una de estas empresas. Es más que probable que en pocos días se declare en bancarrota. En la práctica, este hecho marca el final de Copper Mesa Mining Corporation.

Para las comunidades de Intag, lo que esta decisión significa es que sin dinero Copper Mesa no podrá seguir violentando nuestros derechos, ni financiando el caos social en nuestra zona, tal como lo ha venido haciendo desde mayo del 2004 cuando conocimos la existencia de la empresa en Intag. Ésto a pesar que la empresa sub-contrató a una empresa supuestamente agrícola (Schwarz y Drouet) para no perder su presencia en la zona (contrata a ex-funcionarios de la empresa minera). Dicha empresa está calificada para brindar servicios a la industria petrolera.

Hasta lo que sabemos, la decisión de la Bolsa de Valores de Toronto es única en la historia de luchas comunitarias en contra de empresas transnacionales mineras.

Trascendencia.
Sesenta por ciento de las empresas mineras del mundo están inscritas y cotizan sus acciones en las bolsas de valores canadienses, siendo la Bolsa de Valores de Toronto la que más aglutina (1410 empresas mineras). Una de las razones por esta anomalía es la casi total falta de regulación por parte del gobierno, juntamente con la facilidad para inscribir empresas en las bolsas canadienses. La industria minera es excepcionalmente poderosa en Canadá, y pocas veces la Bolsa se ha atrevido a tomar una medida como esta..

Aunque sabemos que la decisión se basó en una o más violaciones de los reglamentos de la bolsa, pesamos que las verdaderas razones son otras (las empresas mineras canadienses constantemente violan dichos reglamentos). Una fue la presión creada por el juicio planteado en Canadá por tres compañero/as inteños en contra de la empresa y la bolsa de Toronto, que creo que fue clave. Las constantes denuncias realizadas por la DECOIN a la Comisión de Valores de Columbia Británica desde 2005, las cuales señalaban manipulaciones fradulenta de la información por parte de la empresa sobre sus proyectos mineros en Intag seguramente fueron claves. Pensamos también que los artículos últimamente publicados en diarios canadienses (en primera plana) sobre el juicio y el asalto de los paramilitares jugaron un papel importante. Y, por último, los documentales sobre la lucha en favor de la vida en Intag que se han presentado en Canadá y varios otros países del mundo, seguramente también ayudaron.

Ahora esperemos que este gobierno de turno no se le ocurra meterse donde dos empresas transnacionales han fracasado.

DECOIN’s Assembly: Photos and Text (en español e inglés)

czorrilla — Tue, 26 Jan 2010 01:24:01 +0000

Juan Ibarra, one of many who publicly thanked DECOIN for our work

DECOIN’s gathering this past Friday (22nd Jan) at the Piscinas de Nangulví. For the report, see below. (versión en español le sigue al inglés)

On Friday, January 22, at the Pisicinas de Nangulví, DECOIN held an assembly to celebrate 15 years of work and to elect a new board.

The Assembly was an extraordinary event. In all 65 friends from about 22 communities (maybe 25) and several organizations came (we had invited 60 each with a letter). It was a time to see the main people who have been working so hard to defeat the mining project. A time to remember fifteen years! of hard work, hardship, joy, defeats, and triumphs.

People got up, about a dozen or more, and publicly thanked DECOIN, and each and everyone in the room for the work done. It was very moving, even surprising (pleasantly so). Robin’s testimony brought tears to many eyes. One of the things he pointed out was that it was because of DECOIN that other organizations were able to live and grow. Others pointed out that very few organizations live to be 15. Juan Ibarra: “if it hadn’t been from DECOIN we would have been forced off our homes and communities”. Others recalled how they became involved in the struggle. Mareano: “What we have learned is that anyone who fights to defends the environment is DECOIN”. The young (and very brave) woman president from Rio Verde stood up and told us of her admiration for what we had accomplished and the level of environmental awareness in this part of Intag, and begged us to go to her area and work in environmental education so her people could be as aware. She also asked for help in conserving the forests in her area which are being rapidly decimated, and to help her create watershed and community forests reserves.

Marcia scolded us for not inviting everyone involved in the struggle (I pointed out that it would have been not less than 400 friends!, completely beyond our budget) However, we hope to, with everyone’s help, to hold a large party celebrating 13 years of the Mitsubishi bonfire and an Intag free of mining within the next few months. You are cordially invited!!

For me, and as I told everyone, I felt joy at seeing so many familiar faces I’ve seen throughout the years all in one place. What a high! I told them that when people ask me how I can stand the day-to-day and year-after-year stress related to this work, I said, “easy, each and every one of you inspires me”. They really are inspiration.

Padre Geovanny Paz speaking at DECOIN's Assembly

Geovanni Paz gave a wonderful talk. He recalled the first DECOIN days, remembering the hardships, the disbelief in people about our mission, the threats, the commitment of the first members. He expressed genuine awe at the transformation manifested in the people in the room (he was in Cuba for many years starting in 1997); in their ability to publicly speak, their commitment to protecting the environment and defend their rights; their environmental awareness; their eloquence! It really blew him away. He was very motivated. One of the things we committed to right then and there was to undertake a series of leadership workshops with him, starting in March (by radio at first).

Silvia went more a little bit more into detail of our work during the past 15 years with a powerpoint presentation. We also had a time line up on the wall for even more details. But even as she was enumerating all the stuff and mischief we’ve been up to, I, jose cueva and Im sure others, remembered things that we had forgotten about. Really, it was impressive the number of things we’ve accomplished as DECOIN (i hope to soon have an summary up on our site).

Next: a couple of musical breaks- one by Ceneida, Mareano’s and Piedad’s teenage daughter from Barcelona who dedicated a special song for DECOIN. What a voice!!! Then, Alirio with his fantastic anti-mining songs (big hit, several encores), and Willy Coronel with a hearth-wrenching Atahualpa Yupanqui song.

Alirio Ramirez

After the music, people shared ideas of where DECOIN should go in the next couple of years: The most mentioned: more community reserves (and expand current ones)., followed by more reforestation, much more environmental education with kids but also adults (more work to prevent forest fires); more work to avoid deforestation; promote tourism more; keep supporting the transportation of high-school students; importance of supporting the solidarity store in Otavalo to sell cabuya and other products (Casa de Intag); reduction of, and training in pesticide use; leadership training; more productive alternative projects; work more in solid waste management (prevention of contamination); special request for Decoin to get more involved in the Manduriacos area; need to work more with the local media; more work on the political sphere(!). There were a few more that I can’t recall right now, but you get the idea. All of these ideas came from the community representatives. Most things we do anyway, others we’ve been wanting to do for a long time. About time then!

We finished by electing DECOIN’s new board members: Neither Silvia or I could get out of being reelected (by unanimous vote), but we added Sonja Dillmann as Secretary/Treasurer, and Armando Almeida as Vice President. Then we all elected two people from each Parroquia (4 from Garcia Moreno) to make up the expanded Board (called support groups). Including Geovanni Paz, who was chosen as Permanent Consultant, the expanded board is now composed of 21 members. I’m guessing that most of the time the central board will meet, but hope the expanded board can meet not less than 4-5 times per year. I’m also hoping that in the future the support groups will play an active role in Decoin’s work.

Willy and Ceneida

Then, lunch served with trout from the San Antonio community (one of the projects we supported)and Naranjilla Chicha.

A very, very special event.

Oh, one more thing. It could hardly be clearer that THERE WILL BE NO MINING IN INTAG. Not with the kind of folks that accompanied us at the Assembly. Their energy will be needed if the government goes ahead with the plans of exploring in Junin via the newly created state-owned mining company. For now it will be difficult because the company has not money, but that can quickly change. MORE ON THIS IN MY NEXT BLOG

ASAMBLEA DE DECOIN AFIANZA COMPROMISOS DE INTEGRANTES CON LA CONSERVACION DE LOS RECURSOS NATURALES DE INTAG

LA DECOIN MÁS FORTALECIDA QUE NUNCA

En el complejo turístico de Nangulví, y con la participación de 65 personas de aproximadamente 23 comunidades y varias organizaciones, este viernes, 22 de enero la DECOIN llevó a cabo su asamblea para, no solo renovar la directiva, sino para celebrar 15 años de vida de la organización ambientalista.

Silvia Quilumbango, presidenta de la DECOIN, se encargó de dar la bienvenida a los y las participantes de las comunidades, algunos de los cuales iniciaron su viaje temprano en la madrugada. Christian Paz moderó el evento, el cual continuó con un recuento por Silvia Quilumbango de algunas de las actividades y logros realizados por la DECOIN. Pero el tiempo fue demasiado corto para enumerar las cientos de acciones que la organización ha realizado a favor de la conservación de los recursos naturales de la zona (ver a continuación).

La asamblea estuvo contagiada de emoción y alegría. Muchos de los asistentes agradecieron el trabajo de DECOIN a través de esta última década y media. Una buena parte de las intervenciones dieron fe de la importancia del trabajo de concienciación, educación, y apoyo a la creación de otras organizaciones. Otros le reclamaron a la organización por no haber invitado a los cientos de otros “amigos de la DECOIN” quienes formaron parte integral de la lucha contra la minería. Carlos Zorrilla, directivo de la DECOIN, respondió a este justo reclamo diciendo que hubiera sido imposible invitar a 400 o 500 amigos para esta asamblea, pero que con la ayuda de las comunidades y organizaciones, próximamente se realizará una gran fiesta para celebrar la definitiva salida de las empresas de Intag.

Posteriormente los y las asambleístas eligieron a la nueva directiva. Carlos y Silvia fueron eligieron de nuevo como Director Ejecutivo y Presidenta por unanimidad. Sonja Dillman fue electa Secretaria/Tesorera, y Armando Almeida es el nuevo Vicepresidente de la DECOIN. Además, se procedió a elegir a dos representantes de cada Parroquia para conformar grupos de apoyo (ver más abajo)

El Padre Geovanni Paz, quien viajó expresamente desde Otavalo para apoyar la asamblea, fue electo como Asesor Vitalicio.

Después de la elección se pidió a los asambleístas que orienten el trabajo de la DECOIN para los dos próximos años. Todos estuvieron de acuerdo que era indispensable trabajar en las escuelas y colegios en educación ambiental. Muchos expresaron gran preocupación por los incendios agrícolas que azotan la zona y solicitaron que la DECOIN destine más recursos para frenar este flagelo. Otra área de trabajo apoyado por todos fue la expansión y creación de nuevas reservas hídricas comunitarias. En este tema, las presidentas de las comunidades de Río Verde y Cielo Verde expresamente solicitaron a la DECOIN que trabaje más en la zona de los Manduriacos para frenar la terrible deforestación que esta decimando los bosques que protegen sus ríos, a la vez solicitando una mano para crear bosques comunitarios en sus recintos. Los asambleístas también pidieron apoyo para frenar la contaminación, y mayor involucramiento en el manejo de desechos sólidos.

El Padre Geonvanni Paz uno de los fundadores de la DECOIN expresó su admiración por la transformación de los inteños y por la calidad humana de las personas presentes. Recontó su experiencia de los primeros días de la DECOIN, y motivó a los asambleístas a que sigan en la lucha por defender sus derechos, y señaló la importancia de seguir fortaleciendo a las organizaciones. Leyó parte de la carta ecológica del Papa, en la cual llama a tomar conciencia del desastre ambiental creado por el hombre, y la obligación de cuidar la creación. Al final, anunció que en el mes de marzo iniciará un programa de capacitación de líderes que él mismo liderará a través de la Radio Intag (inscripciones en la DECOIN, el Consorcio Toisán o la Radio Intag).

Durante el evento hubo varios números musicales a cargo de la Srta Guachagmira, quien cantó una canción para la DECOIN, acompañada en la guitarra de Luis Burbano, de la comunidad de Cerro Pelado. Después los participantes se motivados con las canciones ecológicas de Alirio Ramírez, quien contó un poco del origen de algunas de sus canciones. Willy Coronel, de Radio Intag, llamó a tomar más conciencia de la importancia de a lucha contra la minería con una hermosa canción de Atahualpa Yupanqui.
El evento cerró con un buen almuerzo acompañado por chicha y truchas provenientes de San Antonio de Cuellaje, unos de los proyectos apoyado por DECOIN.

Sin duda alguna, después de la asamblea, la DECOIN queda más fortalecida que nunca.

Parte de la lista de los integrantes de los grupos de apoyo de la Decoin

García Moreno zona alta: Marcia Ramírez, Nelly Haro y Mariano Guachagmira

Zona baja: Carmen Proaño y Piedad Mora

Peñaherrera: Pedro Bolaños y Oswaldo Armendariz

Plaza Gutiérrez: Roberto Castro y María Vaca

Apuela: Enma Garzón y Jaime Torres

Vacas Galindo: Isabel Anangonó y Ramiro García

Cuellaje: Cristian Ayala

Posted by: czorrilla / 6:02 PM

DECOIN’s gathering this past friday (22nd Jan) at the Piscinas de Nangulví. For the report, see below. (versión en español le sigue al inglés)

On friday, January 22, at the Pisicinas de Nangulví, DECOIN held an assembly to celebrate 15 years of work and to elect a new board.

We finished by electing DECOIN’s new board members: Neither Silvia or I could get out of being reelected (by unanimous vote),,, but we added Sonja Dillmann as Secretary/Treasurer, and Armando Almeida as Vice President. Then we all elected two people from each Parroquia (4 from Garcia Moreno) to make up the expanded Board (called support groups). Including Geovanni Paz, who was chosen as Permanent Consultant, the expanded board is now composed of 21 members. I’m guessing that most of the time the central board will meet, but hope the expanded board can meet not less than 4-5 times per year. I’m also hoping that in the future the support groups will play an active role in Decoin’s work.

Then, lunch served with trout from the San Antonio community (one of the projects we supported)and Naranjilla Chicha.
,
A very, very special event.

ASAMBLEA DE DECOIN AFIANZA COMPROMISOS DE INTEGRANTES CON LA CONSERVACION DE LOS RECURSOS NATURALES DE INTAG

LA DECOIN MÁS FORTALECIDA QUE NUNCA

Alirio Ramirez

El Padre Geovanni Paz, quien viajó expresamente desde Otavalo para apoyar la asamblea, fue electo como Asesor Vitalicio.

Sin duda alguna, después de la asamblea, la DECOIN queda más fortalecida que nunca.

Parte de la lista de los integrantes de los grupos de apoyo de la Decoin

García Moreno zona alta: Marcia Ramírez, Nelly Haro y Mariano Guachagmira

Zona baja: Carmen Proaño y Piedad Mora

Peñaherrera: Pedro Bolaños y Oswaldo Armendariz

Plaza Gutiérrez: Roberto Castro y María Vaca

Apuela: Enma Garzón y Jaime Torres

Vacas Galindo: Isabel Anangonó y Ramiro García

Cuellaje: Cristian Ayala

Posted by: czorrilla / 6:02 PM

PINETREE and Copper Mesa Mining Corporation’s Latest Bullish Report

Carlos Zorrilla — Tue, 06 Oct 2009 10:54:00 +0000

Dec 11 2009

Pinetree and Copper Mesa Mining Corporation’s Latest Bullish Report

If the quote: -You can never underestimate the intelligence of the American Public- is true, then it is even more true to hold that You can never overestimate the idiocy of the Canadian investment firms.

Yeah, I’m thinking of Pinetree’s latest latest brilliant move to take over Copper Mesa.

Who are these guys anyway, and why would they want to throw away more money into the bottomless pit that is Copper Mesa? (Pinetree had invested several millions from squeaky-clean Canadians in the past in this shipwreck)

HERE IS A MINING COMPANY WITH NO CONCESSIONS, heavily in debt, facing a multi-million dollar lawsuit in Canada, hated by local communities, and without any future whatsoever. I wonder how many of Pinetree’s investors have an inkling of what the hell their investment firm is up to.

I guess we could say that Pinetree is the proud owner of Copper Mesa’s Flotsam (see my previous blog for details) But wait, there just HAS to be much more behind this idiotic move than meets the eye. Is it back-scratching time for the Ol’ boys?

Anyway, back to the company’s second quarter Fantasy Report (they’ve yet to publish their 3rd quarter fiction on their web site, but it’s available at sedar.com and it’s equally enGrossing)….. I have to admit that I always look forward to reading the company’s financial and Management, Discussion and Analysis reports. It’s highly entertaining. The information used here is based on their 2nd quarter financial and Management Discussion and Analysis reports posted on their web site.

The company, according to the reports:
- Had $ 1500 in the bank and owes almost millions of dollars in debt as of June 30th
- Cannot prove their mining titles in Junin are valid, but affirms it wants to develop its “properties” in Ecuador, implying and denying it still owns the JUNIN and Chaucha mining concessions (IN DEC 2009 CODELCO REPORTED THAT IT HAD BEEN DRILLING IN CHAUCHA FOR MONTHS AND THAT IT DID NOT FIND ENOUGH COPPER TO SATISFY THEIR NEEDS.
See:
http://www.vistazo.com/ea/pais/?eImpresa=1014&id=2938
Another google result on a prestigious magazine from August of 2009
http://www.americaeconomia.com/321753-Codelco-explora-yacimiento-de-cobre-en-Ecuador.note.aspx
You do not need to be fluent in Spanish to get get that the Chaucha concession has been explored by Codelco (you can also translated them using the google translation tool)

Just what is up for grabs?

In spite of what Copper Mesa claims in page one of the latest Management’s Discussion and Analysis for the three months ending March 31, 2009, the company no longer has concessions in the Intag area. It lost its most “valuable” concessions- including the Junín mining concession, and Chaucha. The Junin concessions Copper Mesa permanently lost in November 2008 and January 2009. These concessions are in the hands of the government and, according to the new mining law, can only be exploited by a national mining company.

The company list as one of its most important assets the properties in the Junin area. However, Copper Mesa does not have nearly as many legal land titles in the Junin mining site as they claim, ever since the government took away 17 of them away after discovering illegal procedures in their transactions (an additional 15 properties are being looked at for irregularities).

They are certainly not buying a viable company. Copper Mesa’s stocks have lost more than 98% of their value in the last few years (and the slide continues). They are also quite a bit in debt- to the tune of more than three million dollars, and in debt with a community development organization, renters and employees.

The Junin mining site, to list just some of the insurmountable obstacles faced by any mining company idiotic enough to want to resume this project,:

1) Is located in primary cloud forests harboring dozens of endangered species of mammals and birds (including Jaguars, Brown-faced Spider Monkeys, and Spectacled Bears)
2) Has several pre-Incan archeological sites within its boundaries
3) Its “inferred” mineral deposit is several times larger than what was inferred by Bishimetals in the 1990’s after year of exploration.
4) Has aroused unparalleled local government and community opposition
5) Sits wholly within a newly created Municipal 18,000 hectare protected area
6) Since the passing of the new mining law, the concession can only be exploited by the national government.
(For a complete list of obstacles, see the blog, Nineteen Obstacles to Mining Development in the Intag Region of Ecuador

Whoever buys this outfits, also buys a company that has experienced very grave problems with communities and government officials, and has lost around 30 million dollars without anything to show. Certainly the company never drilled within the infamous Junin mining concessions.
What is up for grabs is a legacy of irresponsible administration (not to say lunatic), human rights abuses, violent conflicts, plus a major lawsuit in Canadian courts against the company and the Toronto Stock Exchange. It’s a business bogged down by a huge debt, ridiculously high office rent, astonishingly high wages (especially considering the lack of results), no real assets on the ground, and very negative perception by all involved in this business in Ecuador.

Chaucha and Telimbela. Is Chaucha a real asset? Even if it were, it is very likely no longer in the company’s hands. This mining concession was not picked up by any mining companies for about 10 years after a Mitsubishi Subsidiary finished exploring the site. If it was worth anything, someone would have snapped it up long before Copper Mesa. Antofagasta, a Chilean mining company, pulled out of a partnership with Copper Mesa to develop this site after seeing the poor results of a few months of exploration.

Telimbela is an interesting case in what could be seen as insider trading. The Telimbela concession legally belongs to Ecuagold, which at the time of the exploration deal, was headed by one of Copper Mesa’s ex directors.

In short, the company is selling a business that has, not only no future, but no mining concessions in its name of any worth in Ecuador- with zero chance of ever getting the concessions back- an unsavory local reputation, and the rejection of the local communities where it has worked, plus a multi-million dollar lawsuit against it in Canadian courts.

What a deal!

- Confirms the loss of its Zonia and Emerald Isle mining projects in Arizona to a debtor for 1.7 million bucks. The report didn’t dare specify how many millions it lost in the deal, but there was a transfer of more than 30 million shares of CMMC as part of the deal
http://www.coppermesacorp.com/_resources/news/ACX0808AcquisitonofSGVcloses.pdf
- Suffered 31 million dollars in losses to date
- Failed, again, to mention the loss of 17 properties within the Junin mining concessions, and to notify investors that a new protected area was created right over the mining site.
- Did not mention the multi-million dollar lawsuit presented in Canada against Copper Mesa Mining Corporation plus two of its directors, and the Toronto Stock Exchange (see http://www.ramirezversuscoppermesa.com/)

To start, they lost their US mining interest to the investor who lent them 1.7 million back in 2008 to get them out of financial straits. This is what the company said in their corrected news release, released October 2nd:
Copper Mesa Mining Corporation (“Copper Mesa” or the “Company”) (TSX:CUX) today announced the transfer of Redstone Resources’ properties to the lender of a bridge loan facility, negotiated on September 10, 2008. This transfer is the result of a non-payment by the Company in June 2009. http://www.stockhouse.com/News/CanadianReleasesDetail.aspx?n=7473301

Redstone controlled the Emerald Isle and Zonia mines in Arizona. The previous release had said the company had sold Redstone. STREEEETCH.

Interesting about the correction… Could it be that maybe someone in the BC Securities Commission is finally checking to see what the company is saying? If so, it may be because on September 11th, the company was put on a de-listing track by the TSX.
http://www.tmx.com/en/news_events/news_releases/9-11-2009_TSX-ReviewCUX.html

So, ONWARDS in the stretching department. In the latest release (Oct 3) correcting the earlier release about the so-called sale of Redstone Resources, the company asserts the following:

The Company will continue to focus its efforts on the advancement and/or sale of its properties in Ecuador.
http://www.stockhouse.com/News/CanadianReleasesDetail.aspx?n=7473301

This is rich! Advancement and/or sale of what? If by properties they mean their concessions, they are misleading investors big time. The company definitely lost the Junin mining “properties” to the government in November 2008. You can only develop or sell what you own, not what you hope to own, or imagine you own (see the Losing the Junin Concessions section).

Whopperville. Here’s what the company says on its latest Management,Discussion & Aanlysis report
Also included as part of the 2009 Law was a stipulation, Article 24, that the government had the right to revert to the State any mineral concession on which it had previously conducted any exploration or exploitation. In late April, the MMP issued an internal request for a review and list of any concessions to which Article 24 might apply. On the subsequent list as prepared by the technical group within the MMP were the Junin, Chaucha and Telimbela properties. Although the Company has received no notification from the government that it intends to revert any of the properties under this Article of the 2009 Law, this has nevertheless served to cast a cloud of doubt over the Company’s tenure of title to these properties. In fact, essentially every mineral concession has had some prior exploration done on it by the government in Ecuador and is therefore subject to such potential reversion (emphasis mine).

The concessions are not “subject” to such potential reversion- the concessions were reverted back to the state almost a year ago. Here’s additional news to any investor concerned about what is left of their diminishing investment with CMMC and in uncovering lies – The government of Ecuador has carried out exploration on a very few mining concessions in the country and not in “every mineral concession” as the report claims. This is one of the biggest lies yet. Unfortunately for CMMC, the government did invest in exploration in the JUNIN mining concessions (Golden 1, Golden 2), plus Chaucha and Telimbela in the south of the country.

LOSS OF THE JUNIN PROPERTIES. The MD&A report states the following
In November 2008, the Company received notices from the Ecuadorian Regional Director of Mines again nullifying the Company’s title to the Junin concessions on the basis that the Company did not file an environment impact study for drilling. Management believes that there are several irregularities in this notice and again they intend to vigorously defend their rights and will take appropriate action to contest this nullification in the Ecuadorian legal system. (See “Measurement uncertainty of the Junin property interest”.)

A bit further down the report, the CMMC goes on to assert that:
The Company has been unable to receive confirmation of title to its Junin concessions for the year ended December 31,2008 and 2007.

Scrolling down the report a little bit more you can find this gem:
If the Company is determined to not hold title to the Junin concessions, the impact on the Company would be material.

So, you might wonder, how can the company maintain that its mining concessions were nullified in

one page, then go on to imply, on a different page, that company may yet have title to the land, then say that intends to develop or sell a property when it doesn’t own anything? Unless, that is, they are thinking of developing a Kentucky Fried Chicken in one of their properties in rural Imbabura (average population density in Intag is about 10 persons per square kilometer). They’ll have a hell of a time selling enough greasy chickens to stay in business. Oh, they better not build it on one of the 17 properties that were reverted back to the state in 2008.

Another mini gem: even though the company lost its concessions in Junin, the company still has the “mining property” as an asset in their balance sheets (to the tune of millions).

The fact is that in 2008 the National Assembly issued the famous Mining Mandate that reverted thousands of mining concessions back to the state, particularly those having no active exploration at the time of the proclamation. This included Copper Mesa’s Junin mining concessions. Just in case you are wondering, the National Assembly’s mandate is above all laws in the country. Further, the mandate included several other provisions meant to restrict or prohibit mining, and it does not allow compensation for the loss of concessions. One of the reasons the National Assembly took this measure was to try to curb the speculation with concessions, and the violent conflicts the presence of mining companies had generated in the countryside (including Copper Mesa’s). Since Copper Mesa had been unable to start exploration in Junin (Golden 1 and Golden 2) due to widespread opposition when the National Assembly issued the Mandate, the company lost the Junin mining concessions. It’s that simple.

Miscellaneous Bullish.
The company still reports this piece:
The Junin project hosts an inferred mineral resource of 982 million tonnes grading 0.89% copper, 0.04% molybdenum and 1.9 glt of silver, or 1.21 % copper equivalent at a 0.4% economic copper cut-off grade (see Micon’s Junin Report).

If you’ve read some of my previous blogs you’d know that Micon International, the company responsible for coming up with those impressive resources at Junin later publicly admitted they could not confirm the data due to, among other things, termite damage to the core samples (no, I am not making this up). In fact, after years of exploration, the Japanese only inferred the possible existence of 318 million tons at only %0.7 copper (total 2.2 million tons of copper). This is almost four times less than what Micon’s over optimistic estimate, which cannot even be verified.

So much for even inferring the Junin site has so much copper. What is truly amazing to me is how Canadian regulatory entities allow the company to continue to report such garbage and in the process help investors lose billions every year. But what am I saying, this is Canada we are talking about, speculator heaven.

So, to recap, as of October 2009 is: Copper Mesa lost their concessions in Ecuador,, it is millions in debt (but did have $ 1500 in cash at the end of June); it also lost their US mining projects,, in September TSX placed it in the delisting track; has all kinds of financial commitments to fulfill (including 1.17 million termination benefits for two officers and an employee; has over $ 100,000.00 in future rent commitments, and so on and forth (the very latest is that the TSX just denied the company’s request to postpone the upcoming shareholder meeting)

Fire Sale…. AND, I found this at the end of the Interim Financial Statement:
Sale of Excel! Resources Corporation
In August 2009, the board of directors approved the sale of 100% of the shares of Excell Resources Corporation to an officer of the Company for $50,000, the deemed fair value as of the date of sale..

Fifty thousand dollars for a company on which there is preciously little information about on the Web, except that it may be an employment agency based in Salt Lake City.

And, lastly, Copper Mesa, apparently has sold, or is about to sell, their land in and around the Junin mining concession to a third party that is telling the locals they are interested in agriculture (we have been unable to confirm if the land has been sold, leased, or rented). Needless to say, very few people are swallowing that lie. The company supposedly buying the land has no connection with agriculture projects whatsoever (it’s called Druoet Schwarz), with interest in WATER (the company was found in 2008 and one of the partners is an ex army colonel) What everyone is worried about is that the presence of this company will spark yet another round of confrontations and divisions. At least three of the employees of this company are ex- Copper Mesa Corporation.

I could go on, but why? You get the point. But do the Canadian regulators get it?

sources: Management’s Discussion and Analysis For the six months ended June 30,
INTERIM CONSOLIDATED FINANCIAL STATEMENTS -UNAUDITED
JUNE 30, 2009
http://www.coppermesacorp.com/_resources/unaudited_financials/2009_2Q_Unaudited_Interim_Financials_MDA.pdf

COPPER MESA SELLING ITS FLOTSAM

Carlos Zorrilla — Fri, 17 Jul 2009 18:44:00 +0000

COPPER MESA SELLING ITS FLOTSAM

Apparently Nortec Ventures decided not to buy Copper Mesa’s Ecuadorian flotsam. But the company’s debris is still for sale.

Just what is up for grabs?

The Junin mining site, to list just some of the insurmountable obstacles faced by any mining company idiotic enough to want to resume this project,:

What a deal!

Article 24 and Copper Mesa’s -Nortec doomed venture

Carlos Zorrilla — Thu, 04 Jun 2009 15:15:00 +0000

Another Bad Deal in the Works

In the midst of Copper Mesa and Nortec Venture’s deal, and not mentioned in the company’s latest creative reports, is the implication of the Ecuadorian government’s intention of taking over as many old mining concessions- including Copper Mesa’s ex JUNIN concessions, which the company lost in November of 2008

As recent as May 24 of this year, the government publicly said that it intends to nationalize the mining sector (http://www.reuters.com/article/businessNews/idUSTRE54N03020090524?feedType=RSS&feedName=businessNews.

Article 24 of the recently approved mining law calls for the government to take back all mining concessions in which in the past it invested in exploration and geological investigation. The application of this article will directly affect all three of the company’s ex-concessions in Intag: Golden 1, Golden 2 and Magdalena 1, plus Chaucha (in the south) since the Ecuadorian government, through its national mining company, Codigem, directly took part in, and helped fund exploration activities in all of these ex-concessions during the 1990’s.

This is a material as it gets, and it was not reported in the company’s latest year end 2008, and first quarter 2009 reports. But this is a little bit like saying the company will lose something they don’t even own, since the company lost all of its concessions in the JUNIN area starting November 2008. Yet in parts of the its latest financial and analysis reports, it claims to own them….*see below)

(Taken from p. 1 of Management and Discussion Analysis)
Overview
During the year ended December 31, 2008, the Company acquired all of the common shares of Redstone Mining Corporation (formerly St. Geneviève Resources Ltd.) (“RMC”) and its United States’ properties – the historical past-producing Zonia and Emerald Isle copper mines as well as an exploration prospect in Arizona and other exploration projects in Nevada, thus broadening the Company’s horizons by diversification in the Americas.

In Ecuador, the Company holds a 100% interest in both the Chaucha(1) copper molybdenum porphyry property and the Junin(1) copper-molybdenum, gold-silver porphyry property;

Interestingly enough, later on the report the company says it hasn’t received confirmation it owns the concessions since 2007
(The Company has been unable to receive confirmation of title to its Junín concessions for the year ended December 31, 2008 and 2007.”- p. 11 of the Management’s Discussion and Analysis For the Year Ended December 31, 2008)

The company also claims that it lost its concessions in Junin because it didn’t have an EIS-, implying that by fulfilling this criterion it may reclaim its concessions. This is a lie. The company lost its Golden 1 and Golden 2 concessions due to the application of the Mining Mandate, which reverted back to the state all concessions that at that time did not comply with a number of criteria, only one of which was not having an EIS. In the case of Copper Mesa, the main reason the company lost its Golden 1 and Golden 2 concessions was because the company never properly consulted with the communities- a Constitutional issue. In any case, Article 24 of the mining law makes this a moot issue, since it forces the government, through the National Mining company, to assume ownership of these and other mining concessions.

Keep tuned for a detailed anaylisis of Copper Mesa’s recent financial and Management Discussion and Analysis reports- including the company’s doubtful reporting regarding the real amount of metals at the company’s ex JUNIN mining concessions.

See the previous blog for another 19 reasons why this is a REALLY BAD DEAL!

Carlos Zorrilla

Nineteen Reasons Why Nortec Ventures Should Stay Out of the Intag Region of Ecuador

Carlos Zorrilla — Thu, 04 Jun 2009 15:14:00 +0000

Thursday, 23 April 2009
Canada’s Nortec Ventures Corp., a mining company based in Vancouver, announced this month its intention of buying Copper Mesa Mining Corporation’s Ecuadorian assets.

Three Intag residents recently filed a lawsuit against Copper Mesa (formerly Ascendant Copper), as well as the Toronto Stock Exchange, for their alleged responsibility of ongoing violence directed at local farmers and community leaders who oppose mining in the region.

Currently, the principal obstacles to mining development in the Intag area are:

A. Based on the Bishi Metals Environmental Impact Assessment of mining in Intag, and on a small (450,000 ton) copper mine
1. Mining project would relocate hundreds of families from four communities.
2. Mining would impact primary cloud forests.
3. Project would cause massive deforestation.
4. Deforestation would lead to drying of local climate, affecting thousands of small farmers.
5. Forests in the concessions are the habitat of not less than 12 species of mammals and birds facing extinction, including jaguars, spectacled bears and the brown-faced spider monkey (Based on incomplete studies, Decoin identified approximately 30 species of threatened or endangered plants and animals).
6. EIA predicted contamination of rivers and streams with lead, arsenic, chromium, cadmium and other toxic substances.
7. Project would destroy pre-Incan archeological sites.
8. It would impact the Cotacachi-Capayas Ecological Reserve (one of the world’s most biologically diverse).

B. In addition
9. Large-scale mining would violate the legally-binding Cotacachi County Ecological Ordinance created in 2000.
10. In 2008 the Cotacachi County government created an 18,000 hectare municipal protected area right on top of the mining site. Mining is one of the activities prohibited within the protected area.

C. Opposition. There is widespread opposition to the Intag mining project. This includes:
11. All seven Parish township governments, the County government of Cotacachi and the Provincial government.
12. Most communities surrounding the mining project.
13. 90% of NGO’s in Cotacachi County and Intag oppose the project.

D. Exaggerated Copper Claims
14. In 2007, Micon International, the entity contracted by Ascendant Copper to evaluate the Junin copper deposit, said that it could not confirm their earlier estimates due to degradation of samples. Copper Mesa had been saying all along that the Junin copper deposit had four times more copper than what the Japanese inferred after years of exploration.

E. Further environmental challenges
15. The area receives between 3000 and 4000 millimeters of annual rainfall.
16. The ore contains toxic heavy metals and sulfur (which would cause Acid Mine Drainage).
17. There is a superabundance of underground water (according to Japanese EIA)
18. Area is exceptionally steep and mountainous.
19. The Toisan Range has many geological faults, posing significant earthquake threat.

Mining ban lift? Maybe, but not for Copper Mesa

Carlos Zorrilla — Mon, 23 Mar 2009 15:34:00 +0000

ECUADOR: Mining ban lift, but not for Copper Mesa
Español a continuación

According to Reuters’s November 10th article, Correa’s government is trying to revive the mining sector in the South of the country (with very little luck by the way), but the government is explicit that the nation’s mining plans do not include the Intag area, where Copper Mesa use to have the Junin concessions (the government permanently took the company’s concessions in November of 2008).

On the 17th of March, CONAIE, Ecuador’s powerful indigenous federation, made up by several other indigenous organizations, presented a lawsuit against Ecuador’s new mining law, for violating the Constitution. The lawsuit argues the law violates Indigenous rights to Free, Prior and Informed Consent.

The Shuar Federation, which has communities in the vicinity the Ecuacorrientes’ El Mirador mine, has said that they will not allow any mining companies into their territories.

So, while the government wants to push mining development in the south of the country, the country’s indigenous movements prepare to give battle. And Intag and Junin are, for now, out of the picture as far as mining development goes.

Reuters’ article below

Tue Mar 10, 2009 4:39pm EDT

UPDATE 2-Ecuador lifts ban on miners, sees them as priority

Tue Mar 10, 2009 6:10pm EDT

By Alonso Soto

QUITO, March 10 (Reuters) – Ecuador will immediately lift a mining ban on Kinross and Corriente, two companies that are part of a handful of projects considered “priority” by the Andean nation, a top mining official told Reuters on Tuesday.

Deputy Mining Minister Jose Serrano said the government planned to start individual negotiations with miners to ink new deals and set the base price for a windfall tax he says will be fair for both sides. A new mining law allows the state to opt for service contracts, but Serrano said Ecuador wants extraction deals.

“The rules of the game are clear for everyone now,” Serrano said. “The mining decree has been fulfilled… it can’t be revived.”

Still, analysts worry the cash-strapped government could seek much better contractual terms in tough negotiations with miners. The global crisis has hit key oil exports and severely curtailed the OPEC nation’s income.

Serrano said the government “wants companies to keep a reasonable profit when prices climb, but share it with the state.” The windfall tax has worried investors seeking capital in an industry hit hard by the global crisis.

Mining companies and investors have grown wary of the leftist government of President Rafael Correa, which set a tax on extra revenues from high metal prices and banned mining to end what he called speculation and tame mounting protests from environmental groups.

“We are in a show-me period were investor have to see if Ecuador is serious about restarting mineral exploration,” said Michael Gray, an analyst with Genuity Capital Markets in Vancouver. “Its a wait-and-see approach for the industry.”

“INVESTMENT PRIORITIES”

Serrano said the government considers Kinross (K.TO), Corriente (CTQ.TO), IamGold (IMG.TO) and International Minerals (IMZ.TO) as investment priorities for the country.

Correa, a U.S.-educated economist, is seeking investment ranging from Canada to China and Iran, to compensate for dwindling oil revenue that had been financing multibillion-dollar infrastructure projects.

Still, the president, who faces reelection on April 26, has hardened his rhetoric against foreign companies that many Ecuadoreans regard as pillagers.

In January, Ecuador approved a new mining law that boosted governmental control over an industry that in recent years had attracted dozens of companies exploring for precious metals.

Ecuador has no large-scale mining. Some companies have found big deposits of copper, gold and silver in its southern and Amazon regions.

Environmental and Indian groups have threatened to resume street protests to demand communities have veto powers over local large-scale mining. Violent demonstrations could pose a risk to the nascent industry.

Serrano said the government had no plans to auction the Junin copper project, which was taken over by the government from Ascendant Copper on charges the Canadian miner illegally acquired the concession. The project was marred by sometimes violent clashes between anti-and-pro mining communities and private security guards. (Editing by David Gregorio)
http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSN1154076920090310
__________________________________________________________________________

Artículo de Reuters avisando el levantamiento de la prohibición de actividades mineras en el Ecuador, pero no para Copper Mesa ni el proyecto JUNÍN. La empresa definitivamente perdió las concesiones de su proyecto JUNÍN el 12 de Noviembre del 2009.

Por otro lado el 17 de Marzo la CONAIE presentó un recurso legal para declarar la nueva Ley minería inconstitucional por violar varios derechos constitucionales, incluyendo el derecho al Consentimiento Libre, Previo e Informado. Mientras tanto, representantes del pueblo Shuar han dicho que rechazarán la presencia de cualquier empresa minera dentro de sus territorios. El proyecto de El Mirador de Ecuacorrientes (Corrientes Resources) podría ser afectado.

Actualización 2-Ecuador levanta la prohibición sobre los mineros, los ve como prioridad
Jue Mar 10, 2009 6:10 PM EDT

Por Alonso Soto

QUITO, 10 de marzo (Reuters) – Ecuador levantará de inmediato una prohibición de actividades mineras en contra de Kinross y Corriente, dos empresas que forman parte de un puñado de proyectos considerados “prioritarios” por la nación andina, un alto funcionario del gobierno le dijo a Reuters el martes.

El Subsecretario de Minería, José Serrano dijo que el gobierno tiene previsto iniciar las negociaciones con las empresas para consolidar nuevos negocios y establecer el precio base para los impuestos extraordinarios, que aduce ser justo para ambas partes. La nueva ley le permite al estado optar por contratos de servicios, pero Serrano afirmó que el Ecuador quiere contratos de explotaciones.

“Las reglas del juego son claras para todos ahora”, dijo Serrano. “El Mandato Minero se ha cumplido … no puede ser reactivado”.

Sin embargo, los analistas se preocupan que el régimen, con escasa reservas en efectivo, podría insistir en duras condiciones en las negociaciones con los mineros. La crisis mundial ha afectado a las exportaciones claves de petróleo y severamente restringido los ingresos de la nación, perteneciente a la OPEC.

Serrano dijo que el gobierno “quiere que las empresas se quedan con de un beneficio razonable cuando los precios suban, pero que compartan con el Estado.” El impuesto por ganancias extraordinarias tiene preocupado a inversionistas en búsqueda de capital en una industria duramente golpeada por la crisis mundial.

Empresas mineras e inversionistas han sido cauteloso del gobierno izquierdista del presidente Rafael Correa, quien estableció un impuesto sobre los ingresos extraordinarios de los altos precios de los metales y prohibió la minería para poner fin a lo que él llamó la especulación y calmar las crecientes protestas de grupos ambientalistas.

“Estamos en un período de espera donde los inversores tienen que ver si el Ecuador esta serio para reiniciar la exploración de minerales”, dijo Michael Gray, analista de Genuity Capital Markets en Vancouver. “Es una estrategia de esperar y ver de la industria.”

“PRIORIDADES DE INVERSIÓN”

Serrano dijo que el gobierno considera Kinross (K. A), Corriente (CTQ.TO), IamGold (IMG.TO) y la Internacional de Minerales (IMZ.TO) como las prioridades de inversión para el país.

Correa, un economista educado en los Estados Unidos, busca inversiones desde Canadá, a China e Irán, para compensar la disminución de los ingresos provenientes del petróleo, los cuales han estado financiando multimillonarios proyectos de infraestructura.

Sin embargo, el presidente, quien se enfrenta a la reelección el 26 de abril, ha endurecido su retórica contra las empresas extranjeras que muchos ecuatorianos consideran saqueadores.

En enero, Ecuador aprobó una nueva ley de minería que impulsó el control gubernamental de una industria que en los últimos años ha atraído a decenas de empresas para la exploración de metales preciosos.

Ecuador aún no cuenta con minería a gran escala. Algunas empresas han descubierto grandes yacimientos de cobre, oro y plata en el sur del país y la Amazonía.

Grupos ambientales e indígenas han amenazado con reanudar las protestas callejeras para exigir el poder de veto que las comunidades tienen sobre la minería a gran escala. Manifestaciones violentas podría plantear un riesgo para la naciente industria.

Serrano dijo que el gobierno no tenía planes para subastar el proyecto de cobre de Junín, el cual fue asumido por el gobierno de Ascendant Copper debido a acusaciones que la minera canadiense adquirió ilegalmente la concesión. El proyecto en ocasiones se vio empañado por violentos enfrentamientos entre comunidades anti y pro-minería por un lado, y las comunidades y guardias de seguridad privada. (Edición de David Gregorio)

http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSN1154076920090310

COPPER MESA SUED IN CANADA

Carlos Zorrilla — Thu, 05 Mar 2009 19:01:00 +0000

Activist presented lawsuit against the TSX which includes Ascendant Copper on March 4

espaniol a continuacion..

http://upsidedownworld.org/main/content/view/1742/68/

Lawsuit: Canadian Mining Firm Financed Violence in Ecuador
Written by Jennifer Moore
Tuesday, 03 March 2009
Source: The Tyee

TMX Group denies claim. Win could affect thousands of other projects by Canadian companies.

“Financing being raised in Canada is travelling across borders to do harm,” said lawyer Murray Klippenstein by phone from his office in Toronto. “We want to find out if our legal system can respond to this.”

Klippenstein is perhaps best known for his representation of the estate and family of native activist Dudley George, who was shot and killed by police in Ipperwash Provincial Park in Ontario in 1995. This lawsuit revealed deep political involvement from the premier’s office and resulted in a landmark public inquiry.

In another ambitious and possibly precedent-setting case, Klippenstein is representing three villagers from the valley of Intag in northwestern Ecuador who are suing Copper Mesa Mining Corporation (TSX:CUX) and the Toronto Stock Exchange. They allege that company directors and the TMX Group have not done enough to reduce the risk of harm being faced by farmers and community leaders in Intag who have faced violent threats and attacks for opposition to a large open-pit copper mine in their pristine cloud forests.

Still, they hope to go further. “What is happening in Intag is illustrative of a wider problem,” a summary of the legal claim states, “the corporate and financial unaccountability of the Canadian mining industry.” So while the case uses established legal principles, the plaintiffs hope it will lead to long-awaited legal reforms to help better control thousands of Canadian financed projects abroad.

Klippenstein, who said he “has learned to go miles on very little,” acknowledges the “staggering financial mismatch” and says that companies have hundreds of millions of dollars to gain, so it won’t surprise him if they spend tens of millions on the case. He also anticipates years of counterattacks, including motions and appeals on technicalities.

But he emphasized that the basics of the case are straightforward. “There’s a simple fundamental legal point that you shouldn’t harm somebody and that you shouldn’t use your money to hire someone who you know is likely to do harm.”

Conflict escalates

Marcia Ramírez is secretary of the Intag Community Development Committee. She lives near the end of the road in an isolated village in one of the most biodiverse places on earth. Her community of Chalguayaco Alto sits at the crossroads of two biodiversity hotspots, the Tumbes-Chocó-Magdalena and the Tropical Andes.

“It isn’t fair,” she told The Tyee, “that a foreign company can come here and contract people who attack us for defending our rights, for wanting to live in a healthy environment, for defending our land and our water.” She added, “We’d like the stock exchange to listen to us and to understand that we’ve been very hurt by one of their companies.”

Now 25 years old, the fight against large scale copper mining has marked daily life for the diplomatic and dedicated leader since she was about 12.

Broad-based opposition to large scale copper mining arose when a Japanese company was initially carrying out mineral exploration a short distance away. When the company released its Environmental Impact Assessment report for the proposed mine, the news that four communities would be displaced, as well as massive deforestation, local desertification, river contamination and harm to endangered species sparked vociferous opposition that persists.

Since Copper Mesa, who has a strategic alliance with the giant Rio Tinto, took over the project in 2004, new issues have emerged with apparent attempts to break the opposition. Now land trafficking, threats of violence, as well as relatively high-paying job offers have been driving a wedge between neighbours and families in these rural communities.

“But,” commented Ramírez, “what most hurt is when they came… with armed men and sprayed us with gas.”

In early December 2006, over 50 heavily armed security guards, mostly ex-soldiers, were hired to reach company concessions and set up camp. Local residents had been tipped off and gathered along the narrow dirt road that the company-hired trucks would have to pass. When they arrived, Ramírez and others tried to urge the armed men to turn around. But instead, the security agents sprayed tear gas into their faces from only a metre away and fired their weapons into the air, injuring one man, also a plaintiff in the case.

When the residents didn’t back down, the guards finally retreated.

The incident was caught on film by a European student researching the controversy and is retold as part of the recent film Under Rich Earth by director Malcolm Rogge that debuted at the Toronto International Film Festival in September. It has also been denounced in a complaint to the Inter-American Human Rights Commission.

Prior warning

Canadian authorities were warned that such an incident could arise.

On March 8th, 2005, three months before Copper Mesa (then Ascendant Copper) was listed on the TSX, County Mayor Auki Tituaña wrote to the Finance and Audit Committee of the Toronto Stock Exchange: “We consider it to be appropriate and fair that before accepting open “trade” of Ascendant Copper Corporation’s stocks in the Stock Market, you evaluate in depth the “new” company’s merits…”

Included in his list of 14 concerns were lack of prior community consultation, lack of legally required municipal approval, violation of a municipal ordinance that declares the area an “Ecological County,” as well as attempts to foster divisions as a “means to achieve company profits against the citizen’s will and at a cost of the loss of unique biodiversity in our territory.”

Then in May, Carlos Zorrilla, executive director of the Ecological Defense and Conservation of Intag (DECOIN), travelled to Ottawa to present a complaint to the Department of Foreign Affairs claiming that Copper Mesa had violated the Organization for Economic Cooperation and Development’s (OECD) Guidelines for Multinational Enterprises. Mining Watch and Friends of the Earth Canada supported the claim.

“I’m here,” he says in a press release, “because Canadians need to understand the real risk of violence that is emerging as a result of this company’s activities.” He added, “The Canadian government must take action to curb the excesses of Canadian mining companies operating and exploring overseas.”

The complaint was withdrawn after eight months when it was apparent that the appropriate authorities would not apply the relevant procedures. The legal summary notes that “the TSX stock market listing of Copper Mesa has allowed the company to obtain over $25 million in capital funds — some of which paid for the armed attackers” in December 2006.

Carolyn Quick, director of corporate communications for the TMX Group, told The Tyee her firm considers the case to be “entirely without merit” and that they will “vigorously defend this position.” She would give no further comment about the letter from Mayor Tituaña nor the complaint made to DFAIT. No one from Copper Mesa was available to speak with The Tyee.

Globalization of legal accountability

Another challenge in holding companies to account in Canada, where the bulk of the world’s mining companies are based, are complicated corporate structures that criss-cross continents.

“By dispersing their actions across borders and saying that ‘Well, we didn’t do that in Canada or Ecuador, that decision was made in the U.S.,’ they can evade accountability. The courts can respond and say ‘Take this case somewhere else,’” says Klippenstein.

Copper Mesa whose headquarters in Colorado, “has connections to some nine different legal jurisdictions, making it difficult to identify which jurisdiction is the proper one in which to hold the corporation accountable,” says the legal summary of the case.

The former website of Copper Mesa (then Ascendant Copper) acknowledged that its corporate structure makes suing directors difficult: “All of the directors of Ascendant and substantially all of their assets and those of Ascendant are located outside of Canada. It may not be possible for purchasers of securities being qualified for distribution under this prospectus to effect service of process within Canada upon directors who reside outside of Canada…”

It is for this reason that the lawsuit focuses on decisions allegedly made in Ontario.

‘Establish clear legal norms in Canada’

However, one possible advantage for rural residents of Intag preparing for a lengthy legal battle on tricky Canadian territory is that they are not alone in their concern.

Their broader goals for legal regulations of Canadian mining companies echo what the Standing Committee on Foreign Affairs and International Trade (SCFAIT) and the United Nations Committee on the Elimination of Racial Discrimination and other civil society groups have already been saying.

While Carlos Zorrilla was in Ottawa in 2005, the SCFAIT was writing its 14th report, which recommended that the government “Establish clear legal norms in Canada to ensure that Canadian companies and residents are held accountable when there is evidence of environmental and/or human rights violations associated with the activities of Canadian mining companies.”

The government responded saying that it “will continue to examine the best practices of other states attempting to address the accountability of businesses for activities conducted abroad.” But it has yet to implement mandatory rules.

Still Klippenstein is hopeful in the face of tough odds. “One has to trust in the promise of a certain amount of fairness and independence that the justice system can provide. It has been shown that powerful people can be brought to kneel this way before.”

It took eight years of legal proceedings before a public inquiry was called in the Dudley George case. They never even made it to court, but a long list of recommendations was implemented.

Ramírez is also optimistic that they have a chance at justice through Canadian courts as part of their fight to leave Intag’s cloud forests intact.

She points out the variety of sustainable development projects that they have been working on as alternatives to large scale mining, including community owned watersheds, a mixed mini-hydroelectric company, as well as agricultural and tourism initiatives. She urges Canadians to see the benefits: “We want future generations to have what we have.”

Jennifer Moore is a freelance journalist in Ecuador.

http://orosucio.madryn.com/articulos/09_03_04.html

ORO SUCIO – Opinión y reflexión
Marzo 04, 2009
Ecuatorianos demandan en Canadá a minera Copper Mesa y la Bolsa de Valores de Toronto

[Querella ecuatoriana en Canadá] En la parte elevada de los Andes ecuatorianos donde desaparecen las carreteras en los bosques nublados de la zona de Intag, alejado de la ciudad capital de Quito y otras ciudades, se encuentra un área de extraordinaria belleza natural. Está salpicado de aldeas pequeñas, fincas familiares y pequeñas fincas cafetales, ubicados junto a la prístina reserva ecológica nacional de Cotacachi-Cayapas. Sin embargo una compañía minera canadiense en fase de exploración afirma que un importante yacimiento de cobre está enterrado debajo de este ecosistema exuberante y comunidades pacíficas. Copper Mesa Mining Corporation, financiada principalmente en la Bolsa de Valores de Toronto, y asociada con el gigante minero mundial, Rio Tinto, afirma que se debe excavar una enorme mina a cielo abierto en las montañas del bosque nublado a fin de extraer el cobre. Marcia, Israel y Polibio alegan en su demanda que la TSX tenía un deber legal bajo las leyes de Canadá de dejar de proveer ayuda financiera a una compañía como Copper Mesa donde existía un riesgo previsible de que los fondos recaudados en la Bolsa serían utilizados para perjudicar a personas en Ecuador.

Marzo 2009, ver la página de la demanda

No obstante, la mayoría de los campesinos y líderes políticos ecuatorianos de la zona creen que la enorme mina a cielo abierto traerá mucho más destrucción social, ecológica y económica de lo que jamás se podría justificar. Los miembros y líderes de la comunidad local han protestado en repetidas ocasiones y han tomado la decisión de bloquear la mina que se propone. Afirman que los pasos que ha emprendido la compañía hasta ahora para iniciar las actividades de exploración minera violan las leyes ecuatorianas relacionadas con los derechos de la tierra y la protección ambiental, y han provocado violentos conflictos en la comunidad. Asimismo aseveran que los agentes de la compañía han recurrido a agresiones físicas, amenazas de muerte y numerosas violaciones de los derechos humanos.

Ataques a las comunidades

El 2 de diciembre de 2006, los miembros de la comunidad fueron alertados que una numerosa y armada brigada de seguridad privada contratada por Copper Mesa (conocida entonces como Ascendant Copper), venía por el camino comunitario con el objeto de pasar a la fuerza por las comunidades y llegar al yacimiento de cobre. Los miembros de la comunidad se movilizaron rápidamente y un grupo de hombres, mujeres y niños se reunieron en el camino para defender sus hogares, tierras y el medio ambiente. Una estudiante de Europa que estuvo de visita para estudiar la controversia captó con una cámara de video lo que sucedió después. Varias camionetas de propiedad de la empresa o contratadas se detuvieron en el bosque, y docenas de hombres uniformados, portando carabinas y revólveres, se bajaron y se acercaron al grupo que bloqueaba pacíficamente el camino.

Los paramilitares se detuvieron a pocos metros de los comuneros del sector. Los miembros de la comunidad les suplicaron que se fueran e insistieron que se llamara a la policía. Repentinamente y sin provocación el líder de los paramilitares apuntó con un bote de gas lacrimógeno y roció a los rostros de las mujeres y hombres a solo un metro de distancia. Luego desenfundó su revólver y comenzó a disparar. Otros miembros de la brigada paramilitar hicieron lo mismo. En total, el personal armado de la compañía hicieron veintenas de disparos.

A pesar del ataque violento no provocado y el revoltijo consiguiente, los miembros de la comunidad no se dispersaron ni se echaron atrás. Sorprendidos y confundidos por la valentía de los comuneros, las fuerzas de la compañía minera se retiraron, se reagruparon, y luego se fueron en las camionetas de la empresa. Una de las mujeres afectadas por el gas fue Marcia Ramírez. Uno de los hombres heridos durante la balacera y el caos fue Israel Pérez.

El ataque del 2 de diciembre de 2006 que patrocinó la compañía fue solo una parte de la amplia campaña llevada a cabo a fin de quebrantar la oposición local, basada en principios, contra la mina a cielo abierto de Copper Mesa. A lo largo de 2005, 2006 y 2007, Polibio Pérez, un representante de la comunidad local, y su familia, recibieron varias amenazas de muerte debido a su papel de líder de la oposición a la minería en Intag – amenazas que según los miembros de la comunidad fueron perpetradas por individuos vinculados a Copper Mesa Mining Corporation. El 31 de julio de 2007, Polibio Pérez fue agredido físicamente por un grupo con vínculos a la compañía minera.

Estas amenazas y ataques son parte de una campaña más amplia de intimidación, acoso y violencia realizada por los aliados de la compañía Copper Mesa de Canadá y a veces aparentemente por agentes de la misma, con el objeto de acallar la amplia y sostenida oposición local a la gigantesca mina de cobre a cielo abierto en la zona de Intag.

Lo que está sucediendo en Intag es ilustrativo de un problema más amplio – la falta de rendición de cuentas corporativas y financieras de la industria minera canadiense. Estos eventos en Ecuador se repiten en numerosos otros países desde la República Democrática del Congo, hasta Perú, las Filipinas e Indonesia, y son indicios del hecho de que bajo las leyes actuales de Canadá, las compañías mineras canadienses no se responsabilizan por los daños que causan en el extranjero.

Sin embargo, frente a probabilidades en contra que eran astronómicas, la Srta. Marica Ramírez, el Sr. Israel Pérez y el Sr. Polibio Pérez al final pudieron encontrar la manera de entablar acciones legales en Canadá a nombre de sus comunidades para defender sus hogares, sus tierras y el ecosistema contra instituciones corporativas y financieras ubicadas a miles de kilómetros de distancia, cuyos agentes y aliados causaban tanta violencia y daño, con impunidad y aparentemente sin rendición de cuentas.

Demanda contra la Bolsa de Valores de Toronto (TSX)

La Bolsa de Valores de Toronto (TSX) facilita más financiamiento para compañías mineras internacionales – especialmente las compañías mineras en fase de exploración – que cualquier otra bolsa de valores en el mundo. Lo hace ignorando los daños potenciales y reales que puede causar, y a menudo causa, este financiamiento.

En el caso de Intag, la cotización en la bolsa de valores de Copper Mesa (en aquel tiempo bajo el nombre de Ascendant Copper) de parte de la TSX permitió que la compañía obtenga más de $25 millones de dólares de capital – un parte del cual financió a los atacantes que hirieron a Marcia e Israel el 2 de diciembre de 2006. El comité de la TSX había acordado previamente a cotizar a Copper Mesa (Ascendant Copper) en su bolsa de valores a pesar de haber sido advertido específicamente mediante una carta de un alcalde local en Ecuador acerca de la participación de la compañía en un conflicto local, y no obstante una advertencia emitida por la agencia financiera contratada por Ascendant que preparó el prospecto de cotización de Ascendant. Dicho prospecto advertía que existía un “potencial para intensificar más la violencia” si se continuaran las operaciones de exploración de minerales. La TSX pasó por alto estas alertas específicas, cotizó la compañía en su bolsa, y pronto los fondos fluyeron para pagar a los hombres armados y violentos que actuaron ilegalmente en un camino comunitario del bosque nublado de Intag.

Según las leyes canadienses, cualquier persona que emprenda una actividad, incluyendo una corporación como la TSX, deben “tomar precauciones razonables para evitar un comportamiento que pudiera acarrear un riesgo irrazonable de daños a terceros”1. Si alguien no toma estas precauciones, y su conducta produce daños, deberá pagar una indemnización por los daños causados.

Marcia, Israel y Polibio alegan en su demanda que la TSX tenía un deber legal bajo las leyes de Canadá de dejar de proveer ayuda financiera a una compañía como Copper Mesa donde existía un riesgo previsible de que los fondos recaudados en la Bolsa sean utilizados para perjudicar a los individuos en lugares como el Ecuador. En otras palabras, la TSX tenía un deber legal de dejar de proveer acceso a asistencia financiera sin tomar las medidas precautelarías de “diligencia debida” para reducir el riesgo de que los fondos recaudados a través de la Bolsa no sean utilizados para perjudicar a individuos como Marcia, Israel y Polibio. En esta demanda, los Demandantes hacen resaltar a algunos indicadores claros, conocidos por la TSX, que señalaban la existencia de un riesgo real de que dichos daños se pudieran producir.

Actualmente, la TSX no toma medida alguna para ayudar a evitar la posibilidad de que los fondos recaudados en sus bolsas causen daños reales a individuos en el extranjero. La TSX actualmente no tiene ninguna política implementada que evitara que la bolsa cotice a una compañía que tuviera una probabilidad – o aun la certeza – de utilizar los fondos recaudados para instigar violencia y abusos de derechos humanos en comunidades locales en el extranjero.

En el caso de Copper Mesa, la TSX proporcionó un medio para que la corporación tenga acceso a millones de dólares de nuevo capital financiero, con el cual la compañía minera pudo continuar y ampliar su campaña a control remoto, de temor e intimidación, y con el cual pudo contratar y, de hecho, contrató las fuerzas de seguridad violentas que agredieron a Marcia, Israel y Polibio.

Los Demandantes no están sugiriendo que la Bolsa de Valores de Toronto sea responsabilizada por todas y cada una de las acciones de las compañías que la TSX decide cotizar. Sin embargo, los Demandantes afirman que la TSX debe tomar medidas razonables para evitar que las grandes cantidades de capital que se recaudan en la TSX sean utilizadas para causar serios daños a individuos y comunidades en lugares como el Valle de Intag en Ecuador, donde el alto riesgo de dichos daños sea conocido o claro.

Demanda contra los miembros de la junta directiva de Copper Mesa

Por otra parte, la demanda alega que los miembros de la junta directiva de Copper Mesa tienen el deber de evitar una conducta que produzca el riesgo previsible de daños a los individuos y comunidades ubicados dentro de las áreas de exploración de la compañía. Son los directores que tienen el control final sobre una corporación y son responsables bajo la ley por sus propias acciones y omisiones que ocurren durante el desempeño de sus funciones como directores.

En este caso, por lo menos algunos de los directores sabían personalmente acerca del uso perjudicial de fuerzas armadas de seguridad privada en Intag. En particular, se les había mostrado evidencia fotográfica de ataques violentos contra reuniones pacíficas perpetrados por las fuerzas contratadas por la compañía, y los directores fueron advertidos specíficamente acerca del alto riesgo de futuros actos de violencia.

A pesar de este conocimiento, los miembros de la junta de directores de la compañía siguieron operando la compañía de tal manera que se aumentara el riesgo de futuros actos de violencia. Aprobaron financiamiento adicional que fue utilizado para fuerzas de seguridad peligrosas. No tomaron ninguna medida significativa para reducir el riesgo de que en el futuro los agentes de la corporación, hicieran amenazas de daños físicos o utilizaran tácticas violentas. Como resultado de los actos y omisiones de los directores continuaron las amenazas y la violencia.

Los Demandantes no están diciendo que los directores corporativos sean responsables ni obligados personalmente por todos y cada uno de los actos de la corporación. Más bien, afirman que en los casos en que los directores de hecho tienen conocimiento personal de un riesgo real e irrazonable de daños a individuos, o que el riesgo sea fácil de percibir, su deber es no actuar de de una manera que perpetúe o aumente dicho riesgo, y deben tomar pasos para reducir el riesgo.

Demanda contra Copper Mesa Corporation

Uno de los defectos serios de los controles existentes sobre las compañías mineras canadienses que operan en el extranjero es que las compañías pueden repartir sus operaciones entre muchas jurisdicciones legales de tal manera que se eviten las leyes de rendición de cuentas en alguna jurisdicción en particular. Esto puede ocurrir mediante el uso de compañías subsidiarias, y a través de la incorporación en una jurisdicción, el establecimiento de oficinas principales de la compañía en otra, y tener sus operaciones efectivas en otra aun. Por ejemplo, Copper Mesa, a pesar de ser una compañía “junior” en fase de exploración, tiene vínculos en nueve jurisdicciones legales distintas, lo que hace difícil identificar la jurisdicción que sería la idónea para exigir que la corporación rinda cuentas.

En esta demanda, los Demandantes se han enfocado en las decisiones, acciones y omisiones de algunos de los principales tomadores de decisiones de la compañía, es decir, los directores, que han ocurrido en una jurisdicción provincial específica de Canadá (la provincia de Ontario). Al emplear leyes y principios existentes de esta manera enfocada, los Demandantes creen que tanto los directores como la compañía pueden ser responsabilizados, ya que la corporación es responsable legalmente de los agravios causados por las decisiones de sus directores.

Necesidad de reforma legal

Si bien los Demandantes buscan justicia bajo las reglas y principios existentes, también creen firmemente que hay una necesidad crítica de una reforma legislativa de las leyes existentes en Canadá, para hacer que en estas situaciones sea más clara, efectiva y consistente con nuestros valores humanos y ecológicos comunes, la rendición de cuentas de las corporaciones.

KLIPPENSTEINS
Barristers and Solicitors, Toronto, Ontario, Canadá
Abogados de Marcia Ramírez, Israel Pérez y Polibio Pérez

——————————

1 Este principio legal histórico se vuelve a enunciar en 2003 en un caso de la Corte Suprema de Canadá de Odhavji Estate vs. Woodhouse, [2003] 2 S.C.R. 263 en el párrafo 45.

Intag Activists to Sue Canadian Stock Exchange and Canadian company

Carlos Zorrilla — Sat, 21 Feb 2009 19:02:00 +0000

News from Intag 21 Februrary

99 days since Copper Mesa lost their concessions in Intag, AND,—-

Community Leaders in Canada to Sue the Toronto Stock Exchange and a Canadian Mining Company

Marcia Ramirez and Carlos Zorrilla, community activists from the Intag area of Ecuador, will be visiting Canada from the 25th of February until the 7th of March as part of a tour to announce lawsuits against a Canadian mining company and the Toronto Stock Exchange.

Besides informing the public about the landmark lawsuits, the community members will be participating in York University’s “Rethinking Extractive Industry: Regulation, Dispossession, and Emerging Claims”, scheduled for March 5–7, 2009 at York University. They will also participate in the March 1st Toronto screening of Malcolm Rogge’s documentary film “Under Rich Earth”, which documents part of the struggle of the Intag people against mining development. Talks at several universities are also planned, including the University of Western Ontario, Huron, and York University.

They will be in Ottawa February 26 and 27th to meet with MiningWatch Canada and other human rights and environmental organizations working in the field of extractive industry and human rights. They also hope to meet with members of Parliament to sensitize them on the urgent need for the Canada to push through legislation to reign in Canadian mining companies overseas.

Marcia and Carlos, along with their lawyers from Klippensteins Barristers & Solicitors of Toronto, will be announcing the lawsuit against the Canadian mining company and the Toronto Stock Exchange for their alleged involvement in human rights abuses at a mining concession site in Ecuador. A press conference will be held in Toronto the week of March 2 by members of the affected Ecuadorian community.”

TEN QUESTIONS YOU SHOULD ASK ABOUT COPPER MESA MINING CORPORATION

Carlos Zorrilla — Fri, 02 Jan 2009 21:08:00 +0000

TEN QUESTIONS YOU SHOULD ASK ABOUT COPPER MESA MINING CORPORATION

1. Q. Does the company have legal title to its much-touted JUNIN mining concessions in Ecuador?
A. NO. On November 12th, the government annulled the titles to the company’s Junin mining concessions as part of the government’s plans to recuperate thousands of mining concessions.. The company also lost titles to other
concessions in other parts of the country. The decision cannot be appealed.
http://www.minasypetroleos.gov.ec/mmp-portwar/faces/indexMinas.jspx
http://www.minasypetroleos.gov.ec/mmp-portwar/face/index.jspx;jsessionid=81f6cd11d6c990fafdc30340e691

2. Q. Does the company have as much copper and molybdenum at its Junin site as it claims it has on its web page?
A. NO. In 2007, Micon International, the company responsible for the inflated estimates of copper and molybdenum at the company’s Junin site, admitted it could not confirm its own estimates due to, among other factors, termite damage to the original core samples taken in the 1990’s by a Japanese firm. The company, however, still has this much higher figure on its web site.

3. Q. Has the company undertaken exploration activities in its JUNIN concessions?
A. NO. In spite of the millions of dollars the company claims it has spent on exploration at JUNIN, Copper Mesa Mining Corporation has not been able to undertake any exploratory activities whatsoever at its JUNIN mining concessions. The last exploration undertaken within the Junin mining concessions was in 1996 by Bishimetals. Bishimetals’ INFERRED Cu and Mo resources are a fraction of what Copper Mesa claims to have.

4. Q. Does the company have a valid Environmental Impact Study for exploration at its JUNIN site?
A. NO. The government refused to even process the company’s 2006 environmental study due to gross inadequacies Since then, the company has not presented a new study. But that hasn’t kept it from spending millions of dollars.

5. Q. Does the project have support from the local communities and government?
A. NO. There is no mining project in all of Latin America that has galvanized so much local government and community opposition. The communities have for years physically blocked access to the concessions, presented several lawsuits and constitutional injunctions to stop the project, and in 2005, burned down the company’s camp. In 2008, the County government of Cotacachi (where the Junin mining project is found) created an 18,000 hectare 45,000 acres) protected area which coincides with the area of the mining concessions.

6. Q. Is it true that the area where the minerals were found is rich in primary forests, harbors dozens of endangered animal species and is rich in archeological sites?
A. Yes. The area where Bishimetals discovered copper is covered in some of the most biologically diverse and threatened forest in the world, which is the habitat for jaguars, spectacled bears, the brown-faced spider monkey and over a dozen other protected species in facing extinction. Additionally, the area is extremely rich in pre-Incan archeological sites.

7. Q. Is it true the current national government is pro-mining?
A. NO. There are officials within the government, including President Correa, who have expressed openness to what he’s called “responsible mining”. However, many within the government are vehemently opposed to large-scale mining.

8. Q. Is it true the new mining legislation will make it easier for the company to reactivate its projects?
A. NO. The new mining legislation currently being debated in the equivalent of Congress contains higher than usual royalties, a 51% tax on profits, and tough social and environmental regulations. The law also will create a National Mining Corporation, which will undertake some of the more lucrative projects. Additionally, the law is more geared to supporting small-scale, and artisanal miners than the large transnational mining companies

9. Q. Is it true the company and/or its directors are being sued in Canada?
A. Good question for to ask the directors

10. Q. Do you really want to own shares of a company with this record?
A. ______________________