Junior gold miner Medoro Resources Ltd. said Wednesday it was in negotiations to acquire Frontino Gold Mines Ltd. from its liquidator and a legal representative appointed by the Colombian government.
Medoro says it has raised over $100 million, which will partly be used to acquire new gold assets in Colombia. Negotiations for the Frontino mine are in the early stages, and no price was disclosed.
The Frontino mine, located about 225 kilometres from Medellin, has been in continuous operation since 1852 and is one of the largest gold mining operations in Colombia.
The Colombian company has been undergoing a government-supported liquidation process since 2004.
Medoro Resources Ltd. is a Toronto-based gold exploration and development company focused on acquiring gold properties to bring to production, particularly in Colombia.
The company owns the rights to interests in the country’s Zona Alta and recently announced it intends to acquire Mineros Nacionales S.A. and the securities of Colombia Gold PLC.
Medoro shares were at 55 cents apiece in afternoon trading Wednesday on the TSX Venture Exchange.
