The decision of the Legislative Assembly to not endorse the bill that seeks to approve the contract between the government and Minera Panamá, shows the fragility of the contracts between the Panamanian state and companies.
The obstacles to the mining project date back several years, since the legal dispute began in 2009, when the Environmental Impact Center (CIAM) filed an appeal of unconstitutionality against the contract granting a 20-year concession to exploit and commercialize the gold, copper and other mineral resources of Cerro Petaquilla.
Adverse court decisions against companies, social and political conflicts and fiscal issues are some of the factors that are impeding the development of productive projects in Central American countries.
One of the latest court decisions affecting companies with investments in the region was that of Minera Petaquilla, in Panama.
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 approval of a draft contract-law in favor of Vera Gold Corp. would ensure an investment of more than $50 million in the former Santa Rosa mine.
This contract-law must first be approved by the Panamanian Congress. The lawyers explained that the aim of this type of concession by law is to protect the company.
The Board of Inmet has already rejected the first offer by First Quantum, which is now making a hostile bid, directly contacting shareholders of IMnet.
Panamaamerica.com.pa reports that "... The multinational is seeking to gain control of the two mines operating in Panama, in a transaction that would exceed 5 billion dollars.
A subsidiary of the Canadian mining company Petaquilla Minerals Ltd. Has received recognition as the largest exporter in Panama on behalf of the Panamanian Association of Exporters (APEX).
In a recent ceremony, the president of APEX presented a plaque of honor in recognition of the Canadian mining company, which extracts gold in Panama.
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.
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.
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.
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.
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.
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.
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