Business
Auxico Announces Memorandum of Understanding With the Department of Bolivar, Colombia, to Produce Gold
MONTREAL, May 08, 2018 (GLOBE NEWSWIRE) -- Auxico Resources Canada Inc. (CSE:AUAG) is pleased to announce that it has signed a Memorandum of Understanding (“MOU
About this update from Auxico Resources Canada, Inc.
[{"type":"text","content":"MONTREAL, May 08, 2018 (GLOBE NEWSWIRE) -- Auxico Resources Canada Inc. (CSE:AUAG) is pleased to announce that it has signed a Memorandum of Understanding (“MOU”) with the government of the Department of Bolivar to produce gold in this area of Colombia. Under the terms of the MOU, both parties agree to work together to set up gold production operations in Bolivar, which will be managed by Auxico. For its part, the Bolivar government agrees to contribute the following: Property on which the gold production will take place; Physical security of the gold production operations; Help with the permitting process, including specifically any required environmental permits; and Liaison with local miners who will supply ore to the Auxico gold production operations. For its part, Auxico agrees to contribute the following: Environmentally friendly technology that will not rely upon mercury or arsenic for gold production; Financing and construction of gold producing operations in Bolivar; and Management of the export and sale of gold and/or gold concentrates. At present, there are two issues of importance to the Government of Bolivar that Auxico will address in this partnership. First, a lot of the current gold production is unlicensed and outside of any regulatory framework. Auxico does not intend to mine gold in Bolivar. Rather, it intends to form partnerships with local gold miners who will bring their ore to Auxico’s facilities to be processed. In this way, the Government of Bolivar, through the operations of Auxico, will set up a legal and regulated framework for gold production in this Department of Colombia. Second, the current unlicensed gold production in Bolivar is often occurring with the use of mercury, which is having a significant negative impact on the environment. By professionalizing the production of gold, and by eliminating the use of mercury in gold production, as outlined in the 2013 United Nations Minamata Convention on Mercury, Auxico will be conducting its operations in an environmentally responsible manner. Auxico and the Government of Bolivar agree to work together in partnership in this regard and to share the profits of Auxico’s gold production operations in Bolivar, with 75% of net profits going to Auxico and 25% going to the Government of Bolivar. Both parties agree to negotiate and conclude definitive agreement...