Representatives of Canadian gold company Medoro Resources formally declared their intention to buy Colombia’s troubled Frontino Gold Mine company, with an offer of over $180 million.
The gold company’s representatives met with the governor of the central Colombian department of Antioquia, where the Frontino mine is located, Caracol Radio reported on Friday.
Negotiations have been ongoing for some time.
“We hope that the signing of the purchase commitment is made in a month,” said Juan Manuel Pelaez, president of Medoro’s Colombian branch.
The Canadian company plans to invest $50 million in the first phase of exploration, and another $50 million in improving the mines’ infrastructure.
The mines are located between Segovia and Remedios, around 200 kms from department capital Medellin.
Medoro also recently aquired Colombia Gold, and owns mineral rights to the Zona Alta and Echandia properties in Colombia’s Caldas department. Frontino Gold Mines has been in liquidation since 2004.