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Auxico Resources Announces MOU with the Department of Guainia, Colombia
Auxico also has 3 agreements with private property owners in Guainia MONTREAL, Sept. 17, 2018 (GLOBE NEWSWIRE) -- Auxico Resources Canada Inc. (CSE: AUAG) is pl
About this update from Auxico Resources Canada, Inc.
[{"type":"text","content":" Auxico also has 3 agreements with private property owners in Guainia MONTREAL, Sept. 17, 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 Guainia in eastern Colombia to produce gold and other minerals. Under the terms of the MOU, both parties agree to work together to set up operations for the production of gold and other minerals in Guainia, which will be managed by Auxico. These other minerals include, but are not limited to, coltan, which is a combination of tantalite and niobium. According to a report from the Servicio Geológico de Colombia (the Geological Service of Colombia, a governmental agency), there is potentially 1 billion metric tonnes of coltan reserves in Colombia, with most of this concentrated in three departments: Guainia, Vichada and Vaupes.1 For its part, the Guainia government agrees to contribute the following: Property on which the mineral production will take place; Physical security of the mineral production operations; Liaison with local miners who will supply ore to the Auxico mineral production operations. For its part, Auxico agrees to contribute the following: Environmentally friendly technology that will not rely upon mercury or cyanide for gold production; Financing and construction of mineral producing operations in Guainia; and Management of the export and sale of gold and other minerals. In Colombia, much of the current mineral production is unlicensed and outside of any regulatory framework. Auxico intends to work in partnership with local miners and the government to produce gold and other minerals in a legal and regulated framework. In addition, current unlicensed mineral production (specifically gold) is often occurring with the use of mercury, which is having a significant negative impact on the environment. Auxico’s operations will not use mercury, in compliance with the 2013 United Nations Minamata Convention on Mercury, thereby having a positive environmental impact in Guainia. Auxico and the Government of Guainia agree to work together in partnership in this regard and to share the profits of Auxico’s mineral production operations in Guainia, with 75% of net profits going to Auxico and 25% going to the Government of Guainia. Both parties agree...