Peru - golden Mine-layer sees opportunity you buy in crisis

The small producer of gold Mining IRL in Peru said that there is hurrying conversations in search of signatures procurement novice monk that they might be struck by the global crisis, due to the absence of liquidity to bet in exploration projects in the sector. The international financial crisis untied in the United States has made the risk investments migrate to values of refuge as the dollar or the gold, which prices have climbed in the last days in the middle of the global suspense.

“Our division of mergers and procurement is accelerating conversations with different companies to acquire already advanced exploration projects and in some cases projects already in production”, said the Mine-layer's president IRL Peru, Diego Benavides, in an interview.

Mine-layer IRL began to operate this year in Peru with a production of 35.000 annual ounces of gold in his mine Corihuarmi; and it possesses several promising projects in the country, which is the fifth biggest world golden producer.

“We are lucky of Peruvian projects, see others in Colombia and have others in Brazil. We are in process basically of doing the due dilligence and of doing technical visits of the different processes”, affirmed Benavides.

The executive apologized for revealing the signatures with which Mine-layer converted IRL, because he said that the information is reserved.

“But basically there are projects of gold and silver, since also other companies as we with liquidity are in hunt process, looking for investment opportunities”, he said.

LIQUIDITY

In the middle of the crisis, the producers of precious metals as gold and silver might turn benefited by the prices.

The gold was rising again on Wednesday because the world turbulency has increased his attraction as sure value, while the investors keep his attention centered in the multimillionaire plan of financial rescue in the United States.

But the companies novice monk that they have no mines in production

and that need of money flow to realize his explorations, would be the affected ones, said Benavides.

“Now when the market is exact and recesionado the investors do not have sufficient surpluses to enter values of major risk and rather they look coberturarse in the dollar or in the gold for example”, affirmed the executive.

“You are novice monk they are going to have to locate companies in production, Peruvian or foreigner, who has sufficient liquidity and access to the market to sell to him his projects or to look for a luck of merger that could endorse his activities”, it added.

In Peru there operates the biggest producer of gold of Latin America, Yanacocha, controlled by the American Newmont Mining Corp; while the biggest precious metals producer is the Company of Mines Good luck.

Almost two weeks ago, Mine-layer IRL announced an agreement of option of five years to acquire 93 per cent of the actions of the Project Ananea in the south of Peru.

Benavides recounted that between the auriferous projects of Mine-layer IRL in march, Ollachea, in the Handle region to the southeast of Peru, is the most next to develop.

01-10-2008 Reuters