Colombian Government supports Medoro's acquisition of Frontino
Posted on: Tue, 06 Apr 2010 16:25:00 EDT
TORONTO, April 6 /CNW/ - Medoro Resources Ltd. (TSX-V: MRS.V) announced today that on Monday, April 5, 2010, the Minister of Mines and Energy, Sr. Hernan Martinez, on behalf of the Colombian Government, issued a press release supporting Medoro's recently announced proposed acquisition of Frontino Gold Mines Limited. The release stated:
"Bogota, April 5 (SP). The National Government wishes to inform as follows:
On March 31, Frontino Gold Mines Limited, currently in mandatory liquidation, and the mining company Zandor Capital, a subsidiary of the Canadian company Medoro Resources, entered into a promise of sale, which will allow for a resolution of the serious problems faced by (Frontino) and for the clearance of the obstacles that compromised its viability.
The deal, approved last week by the Advisory Board composed of workers and pensioners of (Frontino), insures full payment of all pension entitlements for the life of the employee as well as the stability of the current workforce of the company.
The agreement includes, in addition to payment of all obligations of the company in liquidation, with a special emphasis on pension liabilities, social commitments of vital importance to this region and its workers; such as payment of health contributions for pensioners, a contribution destined for the financing of social projects in the area which will increase as production and the price of gold increase, as well as the possibility of equity participation in Medoro by any workers of the company who so desire.
The closing of this transaction clears the way for a better future for more than three thousand families in the municipalities of Segovia and Remedios whose livelihoods depend on gold mining. The agreement reached by these companies opens the door to an industrial modernization plan that will substantially improve the environmental, labour and industrial safety standards of the project as well as to an ambitious social management plan, as proposed by the National Government.
Frontino Gold Mines, after a fruitless search for a solution to its debt problems, went into mandatory liquidation in 2004 and, before the current negotiations, had failed to find a buyer.
These negotiations are a demonstration of investor confidence in Colombia and, moreover, will result in social advancements for the region as well for the mining industry of the country."
John Hick, CEO of Medoro stated, "We are very pleased to have the support of the Colombian Government for our acquisition of Frontino and look forward to completing the transaction and implementing our investment and social programs, which we believe will bring substantial benefit to the people of Segovia and Remedios." (Please see the Company's press release dated March 31, 2010.)
Sintraminergetica, the union representing certain of Frontino's workers, has asserted that it has filed a criminal complaint against Mr. Serafino Iacono, a significant participant in Medoro's proposed joint venture partner in its acquisition of Frontino (as discussed in Medoro's press release of March 31, 2010 referred to above), regarding statements he has allegedly made. Neither Medoro nor Mr. Iacono are aware of any such criminal complaint or of any actionable statements alleged to be made by Mr. Iacono. -----------
Alles was ich schreibe drückt meine aktuelle Meinung aus! Und ist niemals eine Kauf oder Verkaufsempfehlung !
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