Petaquilla Minerals Ltd. (fka PTQMF)

[badge792]

Just in case anyone forgot.......

DAILY NEWS Jan 8, 2015 5:19 PM - 0 comments
Petaquilla could lose Molejon mine

TEXT SIZE bigger text smaller text 2015-01-08
Vancouver-based Petaquilla Minerals (TSX: PTQ; OTCBB: PTQMF), operator of the Molejon open-pit gold mine in Panama, is facing scrutiny from Canadian and Panamanian regulators, leading to a possible cancellation of its mining concession. The Panamanian newspaper La Prensa along with other media outlets have recently reported that Panama’s commerce and industry ministry will revoke Petaquilla’s concession for the Molejon mine in Colon province’s Donoso district, because it failed to pay salaries and benefits to roughly 600 employees last year. Panama’s labor minister Luis Ernesto Carles claims Petaquilla currently owes 604 workers three months of pay and other entitlements totaling US$3.8 million, the local news agency ANPanama reports. The company didn’t immediately return emails and phone calls requesting comment. It has not put out a release to confirm or dismiss the media reports. Meanwhile, Panama’s Social Security Fund is reportedly investigating the firm for “irregularities involving employee benefits.” In a Jan. 6 article, La Prensa stated the Panamanian government is not approving any new mining concessions and will review concessions awarded in the past. If Petaquilla loses its concession, it will not be able to bid for it, according to the report. The financially troubled miner, which started commercial production at Molejon in 2010 before halting operations in late 2013, is also under pressure by Canadian regulators. The company missed the British Columbia Securities Commission’s deadline to file its financial report for the 13 months ended July 31, 2014. The initial deadline was on Oct. 29. But the company, which changed the end of its fiscal year from June to July, said it wouldn’t be able to meet that requirement and received a two-month extension until Dec.29. It also failed to meet that. This prompted the BCSC to issue a cease trade on Dec. 31. The temporary trading suspension on Petaquilla’s shares will stay in place until it files audited financial statements, related management’s discussion and analysis and required certifications for the 13 months ended July 31. In a Jan. 8 release, Petaquilla said it would submit the required fillings “as soon as practically possible.” The miner is currently in the late stages of creating a US$25 million trust with a private Panamanian group to fund its working capital. “This is what’s required for startup of the Molejon mine, which with its resources will consolidate the company,” Petaquilla said in the release. In addition, the junior is facing a delisting review by the Toronto Stock Exchange. The exchange initiated the review on Nov. 27, 2014, and has given the firm until Jan. 26, 2015, to meet all of its listing requirements. Petaquilla closed Dec. 30 at 2.5¢, with a market capitalization of $5.9 million.
0 11 0 0
© 1915 - 2015 The Northern Miner. All Rights Reserved.

Related News
TSX down again, Sept. 29 - Oct. 3
TSX climbs, July 21-25
Inmet boosts copper reserves as First Quantum bid looms
Related Press Releases
Petaquilla Minerals Ltd. Provides Status Report
IIROC Trading Halt - PTQ
Petaquilla Minerals Ltd. Issues Statement Regarding TSX Delisting Review and Provides Third Default Status Report

- See more at: http://www.northernminer.com/news/petaquilla-could-lose-molejon-mine/1003424182/?&er=NA#sthash.xKDOCUpr.dpuf