Baseline Financial Group is the company that will provide an initial payment of $10 million, with a progressive investment of up to $25 million, to revive the extraction of gold from the mine. The contract stipulates that 60% of the proceeds will go to Petaquilla Minerals, 40% to Baseline Financial Group and 10% will go to the administration of a trust.

A statement issued by Petaquilla states "... The aim of the negotiations was to create a trust that will supply the money required to restore liquidity and revive the mining operations of the project in order to pay wages to employees, including debts held with the Social Security Department, and then towards gradually cleaning up the company's finances."

Laestrella.com.pa reports that "... Once the period of fiscal consolidation of the company completed, the remaining funds will be used to satisfy shareholders of the company. "

Source: laestrella.com.pa

More on this topic

Panama: Final End to Molejón Mining Concession

November 2015

The Supreme Court rejects appeal case presented by Petaquilla Minerals to reverse the cancellation of the concession to exploit the gold mine El Molejón.

The appeals filed by the former concessionaire of Molejón in an attempt to recover the concession and invalidate the tender which was called by the PAN for cleaning tailing basins have been rejected by the Supreme Court.

Panama Could Cancel Molejón Mining Concession

July 2015

Although the concessionaire Petaquilla Minerals says it is complying with the requirements of the government, the possibility of canceling the concession is being studied.

The 180 day period which the Ministry of Trade and Industry (Mici) awarded in January to the conessionarie Petaquilla Minerals to resolve its financial problems has come to an end, and the government could revoke the concession granted in 1997.

Panama: New Manager for Molejón Mine

February 2015

As part of the restructuring process to reactivate the operation in the gold mine, Petaquilla Mineras has appointed Arenisca Properties S.A. to manage works at the mine.

The company Arenisca Properties S.A., responsible for reviving the mining operation, "... Is a shared partnership between Petaquilla Minerals and the investment fund Baseline Financial Group.

Petaquilla Minerals Negotiates $70 Million in Credit

April 2010

The Canadian mining company, which owns the Molejón Gold Mine in Panama, today announced that it is negotiating a $70 million credit facility with a leading financial institution.

It has signed an engagement letter pursuant to which it will work with a leading financial institution to execute a US$70 million gold linked facility under which the Company would be required to deliver 91,710 ounces of gold over a five year term.