Colombian mining union Sintramienenergetica said in a statement Monday it refuses to recognize Canadian company Medoro Resources’ deal to purchase Frontino Gold Mines.
“On behalf of the worker’s union, the creditors, and the people of Segovia, who are the legal owners of Frontino Gold Mines – we do not know of any such agreement, nor will we recognize any such agreements,” said Dairo Alberto Rua, president of Sintramienenergetica.
The union accused Medoro of referring to them as a “small group of guerillas and paramilitaries” in a statement released in March.
“We know exactly the worth of Frontino Gold Mines, and will not allow Medoro and persons to take our assets at a price that is a tiny fraction of its true value,” said Rua.
The union claims that only a general assembly of the current shareholders can make decisions about the purchase of assets at the mines.
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.
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.