Panama gold mine to reopen workers to get paid

Petaquilla Minerals will re-open its gold mine in Donoso, Colón on February 1, the day it receives 40 percent of a $25 million loan from a Panamanian investment fund.

 The company will use $10 million of the loan to pay workers back wages and cancel a debt with Social Security for unpaid benefits.
In a note sent to the Canadian Securities Commission, the mining company reported that it reached an agreement for financing with the Baseline Financial Group.
The agreement establishes that, once mining resumes on Feb. 1, the firm will receive 40 percent of the proceeds.
Once operations resume, the remainder of the money will be distributed among company shareholders.
Jorge Obón, a spokesman for Petaquilla, said that the agreement does not involve the purchase of a portion of the equity capital of the Canadian mining company, and said the relationship between the two entities will end once the loan is repaid.
The company began operations in 2009, but work was halted in December 2013 due to financial issues.
On Dec. 31, 2014, the Toronto Stock Exchange suspended the trading of company shares due to its failure to publish required financial documents.
The mine has been the scene of frequent worker protests over unpaid wages.