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 Mon Mar 6, 2000
Excerpt from Bottom-Fish Action for week of Feb 14-25, 2000
    Publisher: Kaiser Research Online
    Author: Copyright 2000 John A Kaiser

 Excerpt from Bottom-Fish Action for week of Feb 14-25, 2000

Ascot Resources Ltd (AOT-V: $0.47)
Technical Hold (LP BF Buy $0.10-$0.19 for 2000)

Ascot Resources Ltd (AOT-V) resumed trading on March 1 after being halted on February 17. Bottom-fisher hopes that John Toffan might steer Ascot into a technology play have been temporarily dashed by news that Ascot is becoming a holding company for another public company. Ascot is investing $1 million by a way of a private placement of 3,333,333 units at $0.30 in Cardero Resource Corp (CDU-V: $1.50), a Tony Drescher shell that changed its name from Sun Devil Gold Corp on May 13, 1999, which in turn was formed by a 2:1 rollback of Euro-Ad Systems Corp on July 3, 1997. Michael Beley and Henk van Alphen subsequently joined the board, and more recently was joined by Leonard Harris, former president of Newmont's Peruvian subsidiary and general manager of the Yanacocha gold project. Cardero has acquired an option to earn 60% of the Cori Huarmi prospect in Peru for US $600,000, 600,000 shares and US $6.5 million exploration over six years. Cori Huarmi is seen as a Pierina style high sulphidation epithermal gold prospect. Past sampling of vuggy silica outcrops within a large alteration system has outlined a gold anomaly covering an area of 2,500 m by 500 m. Cardero plans to complete a structural mapping program in April to be followed by 3,500 metres of drilling. In other words, Cardero will be competing with David Lowell's Luicho low sulphidation system for the market's attention. Ascot will fund its Cardero stock purchase through a $1 million debenture from an insider which will be convertible into 6,666,667 units at $0.15. Ascot does not disclose the identity of the insider, but the only person this is likely to be is John Toffan. While the market responded enthusiastically to Cardero, it responded weakly to Ascot. I would say that is a mistake. The debenture will give Toffan a significant control block in Ascot, which in turn will control up to 75% of Cardero on a fully diluted basis. If Cori Huarmi is a big success Ascot will find itself owning a substantial asset. If Cori Huarmi is a dud, Ascot could turn Cardero into a technology play. In either case Ascot could pursue other ventures, which does not rule out a technology play. In fact, if the CDNX were not so perverse about its change of business rule, Ascot could end up treating Cardero as its exploration arm and turn itself into a technology play.


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