Monday, 10th March 2008 (2357 views)

Negotiations have been completed for a financing deal to modernise and redevelop the Los Chorros gold mine in Colombia, Gemini Explorations has confirmed.

The company said that under the deal, it will receive the first instalment of funding - $500,000 (£247,903) - shortly.

It is also involved in "advanced" negotiations with two new lenders to provide further financing for the upgrade of facilities at Los Chorros.

Gemini acquired the Los Chorros mine in August 2007 after agreeing a deal for an 80 per cent controlling interest in the property.

Subsequent sampling at the mine, which is located in the El Barge-Zargoza mining district in the department of Antioquia, has returned gold values of up to 190.6 g/t gold.

However, when Gemini announced those results in September 2007, it said the Los Chorros mine was being developed with "extremely antiquated" equipment, which resulted in the company negotiating a finance deal to move to more modern production techniques.

Colombia is historically one of the world's top gold producers, with over one million ounces of gold currently being produced in the department of Antioquia alone.

 

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