Candente Copper Corp. (DNT), a Canadian mining exploration company with operations in Peru, headed for its biggest weekly drop in more than four years as community opposition delayed a recently restarted drilling project.
Shares fell 6.3 percent to 45 cents at 12:46 p.m. in Lima. The drop pushed the loss since Jan. 11 to 25 percent, the steepest weekly decline on a closing basis since November 2008.
Peru’s Deputy Mining Minister Guillermo Shinno said Jan. 16 that political groups planned to “paralyze” the Canariaco deposit in the northern Andes. The company had resumed exploratory drilling Jan. 3 after reaching an accord with the local community of Kanaris whose protests over land rights had delayed the $1.5 billion project for a year.
“Investors don’t know what to believe as no one knows who’s in charge of the community,” Jorge Ramirez, an analyst at Kallpa Securities SAB, said in a phone interview from Lima. “Someone has to come forth and clarify the situation, as things seem to be back to square one.”
Candente Chief Executive Officer Joanne Freeze didn’t immediately return a telephone call and an e-mail seeking comment.
The Vancouver-based company’s Canadian-traded shares fell 8.3 percent to 44 cents, pushing the weekly drop to 27 percent.
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