Madre Tierra Unveils Transparent Trade Policy, A Key Environmental, Social and Governance (ESG) Pillar
TORONTO, May 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 release to our stakeholders, a Transparent Trade policy (“Policy”), which is a critical pillar in the Company’s Environmental, Social and Governance (“ESG”) framework.
The Company reiterates its commitment to a more sustainable supply chain through the Policy. Generally, the Policy ensures that the Company will pay approximately 50% more per ounce of gold than other mining operators to our local and licensed artisanal mining partners. The Policy also requires the Company to publish the weighted average purchase price for gold acquired from our local and licensed artisanal mining partners to ensure accountability and transparency.
Further, Madre Tierra avoids brokers and aggregators and purchases directly from our mining partners, increasing the margin received by the miners.
“We recognize that as a mining business operating in Colombia, we have a profound impact on the lives and livelihoods of our local partners,” commented Sasha Kaplun, Chief Executive Officer and Director of Madre Tierra.
Kaplun continued: “Through our Transparent Trade policy, we commit to purchasing gold from our mining partners at a significant premium relative to other gold purchasers in the region. As we strive to deliver strong risk-adjusted returns to our shareholders, we must remain cognizant that we play an essential role in supporting our local mining partners, families, and communities.”
“Based on our projected annual gold purchase quantities for our first year of wholesale operations, we anticipate injecting over a US$1 million into the local economies of the communities we operate in.” Kaplun finished.
“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.”
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