Despite the large mineral potential in Panama, the Minister of Commerce and Industry, Meliton Arrocha, announced that mining concessions have been frozen pending audits of permits issued in previous administrations.

Prensa.com reports that "... In addition to structural changes made in the Department of Mineral Resources, existing concessions, especially that obtained by the Canadian mining company Petaquilla Minerals in 1997 to mine gold in the district of Donoso, Colon province, will also reviewed. "

"... Due to lack of resources Petaquilla has not mined gold since late 2013 and has accumulated a debt of $3.4 million with its former employees. Minister Arrochadid did not rule out that the cancellation of the concession to Petaquilla could be ordered if the company fails to overcome its financial crisis. "

Source: Prensa.com

More on this topic

Petaquilla Resists to lose Molejón Mine

August 2015

The concessionaire has filed a reconsideration motion to avoid cancellation of the concession, and while it is resolved, the government will take care of the necessary maintenance work.

The review process to be carried out now by the Ministry of Commerce and Industry (Mici) could take up to two months.

Notice of Cancellation Given to Petaquilla Gold

January 2015

Petaquilla Gold has been granted 180 days to catch up with outstanding payments of royalties, fees to the Social Security Department and other payments.

From a statement issued by the Ministry of Commerce and Industry of Panama (ICIM):

The Ministry of Trade and Industry announced today, to representatives of Petaquilla Gold, the decision to administratively resolve the granting of the Molejón mining project, recognizing an initial term of 180 calendar days, during which the company can rectify its faults in contractual obligations.

Petaquilla Mine to Sell $45 Million Worth of Gold Futures

September 2010

The mining project located in Panama has agreed the sale to Germany's Deustche Bank of 66,650 ounces of gold over the next five years.

Petaquilla has announced that its production commitments with Deustche Bank represent only 6% of the projects total resources.

Of the $45 million price, $2 million will be invested in working capital for the mine while an additional $40 million will go toward paying off pending bond debts.

Panamanian Mine Gets an Additional $11.6 Million

March 2010

Petaquilla Minerals, a Canadian company, has placed $11.62 million, and will invest them in its 100% owned Molejon Gold Project, located in Panama.

In a press release, the company explains that the funds will also be used for exploring the “Oro del Norte” concession, also located in Panama, and for working capital.