Ross Beaty

- Ross Beaty (Photo: The Nature Trust)

Ecuador has a terrible reputation as a mining jurisdiction, ever since the government there passed a 70% windfall profits tax on metals mined, highlighted by the fact that major miner Kinross abandoned the Fruta Del Norte gold project there last year, which they paid over $1.2 billion for in 2009.

So I have no idea why mining legend Ross Beaty, who founded Pan American Silver and the Lumina Copper Franchise, is plunking $5 million into a TSXV junior called Odin Mining and Exploration (source).

A few possible reasons include Mr. Beaty's impressive contrarian track record, which saw the Lumina Copper group for example, return over 80x to its original investors.

Another reason could be Beaty's recent windfall from his stakes in Augusta Resource, which just sold to Hudbay, and the sale of Lumina Copper to First Quantum. The two deals have grossed over $150 million to Mr. Beaty's coffers in just two weeks.

According to Odin's news release today, the company will spend $3 million to drill 15,000 meters at its Ecuadorian assets. Mr. Beaty will be appointing his own VP of Exploration to run the program as well as taking over the board.

Here is the news release: Odin Announces Private Placement