Medoro Buys Into Colombia Gold

Canada’s Medoro Resources is buying Colombia assets from Frontino Gold Mines for $200m. Medoro will assume all of Frontino’s pension and other liabilities. Medoro has also entered into an agreement in principle to sell a 50% stake in the assets to a company controlled by Serafino Iacono and associates. “Purchase of these high grade gold assets, including an operating underground mine at Frontino, will establish Medoro as a leading gold producer in Colombia, with exceptional upside potential,” says John Hick, president and CEO of Medoro. “With new capital, improved technology and highly skilled mining personnel we believe Medoro will be in a position to liberate the potential at Marmato and Frontino, the 2 principal gold producing areas in Colombia,” he adds. Frontino has been in liquidation since September 2004. The assets are located near the city of Segovia, approximately 220km north of Medellin. Medoro expects the deal to close in 4 months. Medoro’s financial advisor is GMP Securities. Medoro’s primary focus is Colombia. It also has a 100% interest in the Lo Increible 4A and 4B Concessions in Venezuela.