Royalties from Minera Panamá and Petaquilla Gold

Although the law does not require them to, the two mining companies pay voluntarily royalties of 4% to the Panamanian State.

Monday, August 20, 2012

Both mining companies indicated to Capital Financiero that although there was an amendment to the Code of Mineral Resources in Law 13 of April 3, 2012, their concession contract with the Panamanian state is governed by Law 9 of February 27, 1997 , therefore the changes made to the reform are not applicable to their activity. Among these changes is an increase in paying royalties from 2% to 4% for gold and from 2% to 5% for copper.

"However, both companies stressed that they will pay such royalties voluntarily.

So far, the payment of 2% of the royalties has represented for Petaquilla Gold SA approximately $3 million from the more than $180 million in net sales of minerals, a figure that includes the cost of smelting gold and silver exported between 2010 and the first quarter of 2012", reported

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