March 12, 2010 06:00 ET

Official Statement From the Mining and Energy Industry Workers' Union "SINTRAMIENERGETICA", Regarding Ownership of Frontino Gold Mines Ltd.

SEGOVIA, COLOMBIA--(Marketwire - March 12, 2010) - The Mining and Energy Industry Workers' Union "SINTRAMIENERGETICA", of the Segovia branch, who represent the active employees of Frontino Gold Mines Ltd., wish the following to be known:

  1. It is our understanding that the liquidator, Mr. Luis Fernando Alvarado Ortiz and Mr. Serafino Iacono of Medoro Resources are attempting to incite chaos and fear in the mining district of Segovia based on recently published false information and threats. To that effect, criminal charges have been laid against both Medoro Resources and Mr. Serafino Iacono.
  1. We are particularly upset about the fact that top management of Medoro has referred to us as a "small group of guerilleros and paramilitaries".
  1. On February 12, 2010, Thom Calandra stated in his TickerTrax publication that, "Mr. Iacono, as reported here several weeks ago, says he expects Medoro Resources' $180 million+ purchase of pension-bereft Frontino Gold Mines Ltd. to be completed in the next week to 10 days." The Liquidator (Ortiz Luis Fernando Alvarado) has confirmed that no official agreement has been signed with Medoro. Rather only an exchange of information has occurred to date, and Medoro has not confirmed whether or not to accept conditions of any agreement. Therefore we believe there is no valid contract with Medoro being negotiated and no sales agreement in place.
  1. The assets of the Frontino Gold Mines are the private property of the workers, retirees and the people of the region. Accordingly, neither the liquidator, nor the current management of Frontino Gold Mines, nor any government entity in the form of the superintendent, are entitled to negotiate or enter into any binding business arrangements of any kind regarding the assets of Frontino Gold Mines. We the workers, the retirees, and the people of the region are the rightful owners of the assets of the Frontino Gold Mines and accordingly we will negotiate all business arrangements regarding these assets.

We do not recognize the current management, and only a general assembly of the current creditors (shareholders) can make any decision in regards to the business of Frontino Gold Mines Ltd. It is very clear that the liquidator is NOT a creditor and therefore has no right to make decisions.

Our ownership claim is based on the following legal basis:

  1.  Deed; standardized number 1850 in the city of Medellin on 06 August 2003.
  1.  Supreme Court Ruling on Law 20 of 1969.

Alfredo de Jesus Tobon Alvanes (President, ASOACREF)

Marcos Gaviria Lujan (President, ASJUPENSE)

Contact Information

  • "SINTRAMIENERGETICA" Sectional, Segovia
    Dairo Alberto Rua
    Cell: 313 645 4601