Arguing that the basic principles of public procurement were not complied with, in Panama the contract between the State and the company Petaquilla Minera has been declared unconstitutional.
The legal dispute began in 2009, when the Environmental Advocacy Center (CIAM) filed an unconstitutionality appeal against the contract that grants a twenty year concession to Cerro Petaquilla to exploit and sell gold, copper and other mineral resources.
The Canadian company Inmet will define the participation of new partners for its mining project in mid 2012.
The company engaged in the exploration and extraction of minerals, led by its copper mining project in Panama, formerly known as Project Petaquilla, is examining options for getting additional capital and partners to develop the project.
Company representatives said that one option is to sell part of the participation in the project (between 40% and 60%) to a company that would be actively involved, but also under consideration is the possibility of assigning only 20% to a company who would act as a silent investor, leaving Inmet the majority share and operational control of the project.
The gold mine project Petaquilla, located in Panama, agreed a leasing structure with a national bank for the purchase of heavy machinery.
According to a company press release, the agreement was made between the bank and Infrastructural Development Panama, SA (PDI), a company's infrastructure subsidiary.
Leasing will allow the purchase of equipment such as trucks and bulldozers and operate independently, offering better rates to the company and reducing overall cost of the operation.
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.
Since operations began in January 2010, it has had sales of $36 million, paid production expenses of $21 million and sold each ounce for between $945 and $1,152.
The company was granted mining rights on 18 November 2009 and will pay the state 4% of gross earnings over the 20 years it plans to operate.
Each ounce of gold Petaquilla extracts costs the company $600.
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.
Canadian corporation Petaquilla Minerals, owner of the gold Mine Molejón, placed shares for $11.5 million.
In a press release, Petaquilla announced it has negotiated a non-brokered private placement of 24.000.000 common shares at a price of Canadian $0.50 per share ($0.48) for gross proceeds of Canadian $12.000.000 ($11.510.00).
The proceeds will be used for repayment of debt and completion and development of the Company’s 100% owned Molejon gold mine in Panama.
Molejon gold mine, owned by Petaquilla Minerals, received approval for its commercial production stage.
The mine is located in the District of Donoso, Province of Colón. Its production is estimated at 2.200 tonnes per day.
"The Government of Panama highlighted that Molejon will be the country's first mining project of modern times and encouraged the Company to maintain its highest standards of responsible mining as it leads the way to a socially and environmentally conscious mining industry in Panama", reported the company in a press release.