Madre Tierra Secures 120 Kilograms of Gold from Artisanal Miners in Colombia
TORONTO, April 19, 2022 (GLOBE NEWSWIRE) — Madre Tierra Mining Ltd. (“Madre Tierra” or the “Company”), a company that is taking an innovative approach to the traditional gold exploration model by combining the sustainability of a cash flow generating gold trading business with that of traditional exploration potential, is pleased to announce that the Company has entered into several Letters of Intent (“LOI’s”) with legal artisanal and small-scale gold producers licensed under the National Mining Agency of Colombia (Agencia Nacional de Minería or ANM), to purchase in aggregate up to 120 kilograms of gold per year. The terms of the LOI’s allow the Company to purchase, at minimum, 100 Kg of gold per year at a price between 20-25% discount to the international gold spot price per ounce. The Company intends to leverage these LOI’s to purchase gold at a discount and sell into the international gold market.
“We are thrilled to have entered into these LOI’s with our licensed mining partners and look forward to continuing to leverage our relationship with local operators. In combination with our gold commercialization license, one of only twenty-four issued in Colombia, we aim to begin wholesale operations in the coming months,” commented Sasha Kaplun, Chief Executive Officer and Director of Madre Tierra. “Our ability to purchase gold at a steep discount to the international spot price allows us to capture favorable margins while hedging the direct risks associated with mining operations. Further, we are pleased that, through this commercial relationship, we are contributing positively to the economy of Colombia and supporting the indigenous and artisanal mining communities in a socially responsible way.”
“We are continuing to leverage our domestic relationships to aggregate gold from legal and licensed small-scale and artisanal miners and earn a durable margin through the sale into international markets. Our shareholders benefit from the direct access to the gold industry while minimizing risk and exposure to the vast amounts of capital required to conduct mining development, commercialization, and operations,” said Robert Harrison, Chief Financial Officer at Madre Tierra. “As the economy continues to experience inflationary pressure and central banks indicate interest rate increases are forthcoming, we anticipate that the demand for gold will increase over the medium term, which could contribute to further margin improvement.”