Canadian mining firm (V.CSG) facing bribery allegations in Colombia

Peter Kennedy Peter Kennedy, Stockhouse
8 Comments| February 6, 2014


Canadian exploration junior Cosigo Resources Ltd. (TSX: V.CSG, Stock Forum) is facing bribery allegations in Colombia, according to a published report obtained by Stockhouse.

Colombia Environment Minister Luz Helena Sarmiento told Caracol Radio that the government is considering legal action against the Vancouver company for allegedly attempting to bribe an indigenous community in the Amazon to try to eliminate a nature reserve on the Yaigoje Apaporis Natural National Park.

Here is a link to the Caracol Radio report:
http://www.caracol.com.co/noticias/actualidad/gobierno-estudia-acciones-legales-contra-cosigo-por-caso-en-amazonas/20140205/nota/2071740.aspx

When reached in Vancouver, Cosigo vice-president, corporate development Barry Holmes said he was unaware of the allegations and declined to comment.

The report from Colombia is based on allegations that remain untested in a court of law, and the company and its officials are presumed to be innocent until it is proven otherwise.



Cosigo, which saw its share price jump 15.4% to 7.5 cents on Wednesday, has interests in properties in Brazil, Colombia and Canada.

At current trading levels, the company has a market cap of $5.8 million, based on 77.6 million shares outstanding. The 52-week range is 32 cents and 6.5 cents.

Its main focus is the Taraira Gold Belt, which straddles the border between northwestern Brazil and southeastern Colombia.

Reports about alleged bribery have surfaced a day after the company tabled assay results from drilling at the junior’s 100%-owned Machado project in southeastern Columbia, where it has set up a 30-man exploration camp in an area which has hosted numerous artisanal mining operations.

“Our first drill program has shown that the Machado property is underlain by gold-bearing strata with several of our drill holes intersecting high grade gold,’’ said Cosigo President and CEO Dennis Milburn in a February 4, 2013 press release.

Gold mineralization is known to occur at Machado over much of the 20 kilometre strike-length covered by Cosigo’s property.

However, Stockhouse bullboard posters have recently expressed concerns about the company’s ability to continue exploration.

“I have been in the shares now for a long while, but from this vantage point she looks to go lower before she goes higher and I am at a loss to understand how we don’t soon go through further and very serious dilution,’’ .wrote windysurfer17 in a Cosigo post.

The post appeared under the banner “where do we go from here?”

Tags: INDUSTRIAL METALS & MINERALS

Rate this article
2.5 stars
v
Usefulness

Clarity

Credibility

Comments

idleweiss
jmmoreno - you are the one who wrote this article. Are you on the ground in Colombia or are you writing from some cubbyhole in Canada? Anyway - what the f**k do you know idio*?
2 stars
February 6, 2014
Rate this comment
5 stars
v
Usefulness

Clarity

Credibility

CoastalTrader
Full disclosure: I am Barry Holmes, VP Corporate Development with Cosigo Resources. All I will say at this point regarding these preposterous allegations is... look at the picture (above) taken of our Indigenous employees in the local community at the beginning of our recent drill program. They fully supported our exploration program and we are proud of their efforts in helping us complete 20 holes with absolute minimal impact to the environment. A photo journal of this drill program is ...
3 stars
February 6, 2014
Rate this comment
5 stars
v
Usefulness

Clarity

Credibility

gamethrones
bigger story is which fund nuked the market with all its paper? 17 million to 8 million shares in top 30 deals....some fund unloaded 200million to almost 1 billion shares today! and no news releases anywhere?!?
1.5 stars
February 6, 2014
Rate this comment
1 star
v
Usefulness

Clarity

Credibility

windysurf17
This news report accusing Cosigo of making bribe payments is wholly and completely preposterous! There is no doubt some high level political and high level financial chicanery being hatched to try to take away Cosigo's very valuable and rich gold deposits there! Do not think for 1 minute Cosigo has on any level what-so-ever been dishonest or not fully above board on each and every count. Ypou would be hard pressed indeed to find a finer and more ethical group of people than Cosigo. This i...
2.5 stars
February 6, 2014
Rate this comment
5 stars
v
Usefulness

Clarity

Credibility

londry
If true, absolutely repugnant. But at any rate, what are they doing drilling for gold in such pristine wilderness?
1 star
February 6, 2014
Rate this comment
0 stars
v
Usefulness

Clarity

Credibility

jmmoreno
Mr. Holmes you can spin it all you want… but according to the Colombian Minister and media outlets in Colombia: "One issue that became evident is that the company was allegedly trying to bribe some Indigenous people to file a legal action "tutela" by providing money and advice to stage the process to "knock down“ a National Park". By removing the status as a "National Park" an important natural conservation area in Colombia will be destroyed. The sourc...
0.5 stars
February 6, 2014
Rate this comment
1 star
v
Usefulness

Clarity

Credibility

windysurf17
Further to the message I just left...this development is purposely meant to twist the truth. Unfortunately attorneys and money and fighting in courts can take years...Cosigo will have to abandon Colombia for Brazil...hoping the same fate does not await them there as well!
2.5 stars
February 6, 2014
Rate this comment
5 stars
v
Usefulness

Clarity

Credibility

windysurf17
Further to the message I just left...this development is purposely meant to twist the truth. Unfortunately attorneys and money and fighting in courts can take years...Cosigo will have to abandon Colombia for Brazil...hoping the same fate does not await them there as well!
2.5 stars
February 6, 2014
Rate this comment
3.5 stars
v
Usefulness

Clarity

Credibility

Leave a Message

You must be logged in to access this feature.