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An observation deck over the mine at Pueblo Viejo. Photo osirisdeleon.com
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SANTO DOMINGO.- Dominican Republic is abuzz with talk of gold as opponents criticize the mining contract with the company Barrick Gold, while the GoldQuest Mining Corp announced on Wednesday that it has closed the transaction with Gold Fields Dominican Republic.

The geologist Osiris of Leon and the environmentalist Luis Carvajal say the contract with Barrick Gold is a “gift” of the nation’s subsoil assets, since if the price of gold falls by 2015, when the country starts to get its share, the company could close its operations.

He said his greatest concern with the recently amended contract is that the State will no longer obtain US$200 million yearly and as much as RD$42.0 billion in the first 6 years.

He said if the contract’s conditions had remained as agreed in 2002 when the State’s share was between 5 and 25%, it would’ve received US$8.0 billion, using as a reference that the gold’s current US$1,120 per ounce price in the London market.

De Leon it rejected Barrick’s argument that companies of that nature are granted those facilities, noting that the Falconbridge operates with profits in equal parts with the State, regardless of nickel prices.

On Monday, Fernando Sanchez Albavera, head of Barrick Gold’s local operation Pueblo Viejo Dominicana Corporation, noted that in the environmental scope his company is currently spending US$375 million. “The company’s environmental investment is the most money inany project of that type in the world”

GoldQuest press release

Canadian exploration company GoldQuest Mining Corp announced on Wednesday that it has closed the transaction with Gold Fields Dominican Republic BVI Limited.

As a result of this transaction, GoldQuest now holds a 100% interest in its Dominican portfolio.

Pursuant to the terms of the agreement with Gold Fields, GoldQuest has issued 8,600,000 common shares to Gold Fields, representing 12.3% of GoldQuest's issued and outstanding common share capital.

GoldQuest has also granted a 1.25% royalty interest to Gold Fields in exchange for its 60% undivided interest in the projects.

Gold Fields has reportedly invested over CAD6.0m in the Dominican projects and completed in excess of 12,900 meters of exploration drilling on seven different projects.

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COMMENTS
15 comment(s)
Written by: Blutarsky This user is banned, 19 Nov 2009 9:54 AM
From: Dominican Republic, No Spin Zone
Investments this large were calculated on gold prices of at least one year ago....... prices have doubled so this is jackpot territory ....Barrick will renegotiate a more equitable arrangement for the DR....So all the whiners can shut up because Barrick is a very good corporate entity
Written by: juanb, 19 Nov 2009 10:03 AM
From: Dominican Republic
Theres gold in them thar hills. Also in the pockets of our elected officials.

Anybody think that Barrick didn't pay someone to get a better deal?
Written by: Blutarsky This user is banned, 19 Nov 2009 10:11 AM
From: Dominican Republic, No Spin Zone
a deals a deal .............but they will renegotiate and give a bigger piece to the people of the DR ....Let us hope the politicos dont steal it all
Written by: molloy, 19 Nov 2009 10:46 AM
From: United States
Problem here Blu is the politicos have already stolen it...via the cash lent by the IMF. You see, the IMF knows there's money in DR so they want their cut. problem is the politicos will delay in paying the IMF and thats when the the ish will hit the fan. The LIE-onel's of the country will either pay it back or pay some of it back via the cash from the gold they sell. So the next sucker who comes to office will have to deal with the IMF while the outgoing politicos enjoy their jipetas and big ol homes.
Written by: Blutarsky This user is banned, 19 Nov 2009 11:01 AM
From: Dominican Republic, No Spin Zone
A vicious circle and the law of diminishing returns
Written by: xwill7, 19 Nov 2009 11:56 AM
From: United States, El cuarto bate
molly might be correct. who knows how many people have their dirty hands in this
Written by: juanb, 19 Nov 2009 1:16 PM
From: Dominican Republic
Here's the plan. LF does everything possible to help Vargas win in 2012. He does this by mismanaging the country, as he has done for the past 6 years. However, Vargas and his fellow PLD thieves aren't smart enough to realize that the prize (control of the country's finances) is boobytrapped. The foreign loan payments become so huge that there is no money to pay anything. The country starts to default on its loans. Credit dries up. The poor, no longer receiving their handouts from the government start to demonstrate their displeasure. The country starts to fall apart (worse than now). Guess who comes riding in on his white horse to save the country? You got it!!! LF arrives to save us.

Watch and see...
Written by: molloy, 19 Nov 2009 1:39 PM
From: United States
good point Juanb....like Blu stated above "A vicious circle and the law of diminishing returns".
Written by: josean, 19 Nov 2009 1:58 PM
From: United States, Show your Love for DR Vote AGAINST the PLD!

"The LIE-onel's of the country"

molloy, I like your style!
Written by: xwill7, 19 Nov 2009 5:10 PM
From: United States, El cuarto bate
lol juan,
that can only happen in one place...DR
Written by: anthonyC, 19 Nov 2009 6:02 PM
From: United States
Will the "people" agree to renegotiate when the price of gold drops??????

I doubt it.
Written by: mariposa, 21 Nov 2009 12:52 PM
From: United States
The Canadian company offered to build schools, and hospitals in the areas where they would be mining, as a gesture. But the Dominican govt said "NO, we want money". The Canadian officials came back with an offer of $$ PLUS the schools and hospitals, and again the government said "NO. We want MORE MONEY".......this has gone on for a couple of years now.

So, basically, another asset of the Dominican Republic has been "sold" by the corrupt officials. The poor people living where all this "wealth" is , will never see a penny. Shameful.
Written by: dolo1, 25 Nov 2009 9:35 PM
From: United States
Gold in the DR !!!! Columbus is spining hisgrave
Written by: Blutarsky This user is banned, 25 Nov 2009 9:44 PM
From: Dominican Republic, No Spin Zone
and where would that grave be ?
Written by: josean, 26 Nov 2009 6:35 PM
From: United States, Show your Love for DR Vote AGAINST the PLD!
Washington Heights!
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