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:
https://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?”