Canadian Medoro Resources has finalised its long-planned deal to buy Colombia’s Frontino goldmine, for $200 million, reported El Nuevo Siglo on Monday.
The Canadian company said in February it plans to invest $50 million in the first phase of exploration, and another $50 million in improving the mines’ infrastructure.
The mines, which are among Colombia’s largest gold producers, are located in the department of Antioquia, between Segovia and Remedios, around 200 kms from department capital Medellin. The mines have been running for over 150 years.
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.
In 2009, Colombia produced 1.57 million ounces of gold and the country’s Geological and Mining Institute predicts that this figure could double in the next two years.