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.
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.
The company announced that there will be changes in its structure and in the operation of Molejón mine, with projections for gold production at the end of the year being reduced by 5000 ounces.
Representatives from Petaquilla Minerals, the Canadian company which owns the mine, told Prensa.com that the restructuring being prepared by the company would be ready by the end of the year and would involve "...
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.
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.
Gold exports summed $16 million in 2009, three times more than in 2008, according to data from the Economy ministry.
Zorel Morales, president of the Mining Chamber of Panama, explained that the main driver of this growth was the opening of Petaquilla Gold mine, located in Donoso, Colón.
As for copper exports, Morales told Prensa.com that between 2014 and 2015, they could sum over $2.4 billion per year.
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.