Spirit Exploration, Inc. (SPXP.PK), headquartered in Victoria, B.C. operates in mineral-rich Southern Ecuador through its (99 percent owned) subsidiary, Ecuardorgold Corp., S.A. Spirit Exploration, focused on the discovery and initial extraction of gold, silver and copper, is currently vested in the Muluncay Project, Machala, S. Ecuador, where low labor and fuel costs, and gold deposits meeting or exceeding 10 grams per ton, make extraction lucrative. Spirit also has several additional mining opportunities in Ecuador.
In order to expand both its mining and processing capacity, Spirit proposes to offer 300,000,000 shares; there are currently 48,025,000 shares outstanding. The shares are intended to provide an additional $20,000,000 in capitalization. Slightly more than half that amount will be used to further develop the targeted Muluncay Project. The balance will be devoted to exploring other strategic projects like Maria Olivia (a joint venture), Kylee, and Fierro Urco I and II (all concessions). Spirit expects the company’s market capitalization to reach $350,000,000 based on projected revenues from mineral assessments and its increased financial ability to advance new or pending projects. Registration on the AMEX or OTC awaits only completion of audited financials.
Spirit’s business strategy includes acquiring rapidly positive cash-flow mining sites, using local networking to acquire premium land packages, structuring acquisitions to avoid upfront costs, and using local mining talent to minimize technical costs while joint-venturing to minimize exploration and development expenses. With advantageous procurement terms already in place, Spirit will be able to better manage its finances while fully evaluating optioned properties. Ecuador’s readily accessible mineral deposits, combined with relatively unexplored terrain and modern mining techniques, make mineral extraction in S. Ecuador a financially attractive proposition.
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