The Country

The Country

Located in the heart of Central America, Honduras’ rich geological formations, gold mineralization and a stable, democratic government with an open approach to mining development, make it an ideal location for Clavo Rico to begin its mining operations.

Access and infrastructure to the mines are excellent with transportation, communication and support services readily available in nearby Choluteca.

In June, 2000, Honduras, along with Guatemala and El Salvador, signed a free trade agreement with Mexico as a measure to stimulate the economy.

With land use fees as low as $1500 a year for a large mine, and a nominal 1% municipal tax, Honduras has created an ideal environment for foreign companies.

A Brief History of Honduras

During the first millennium AD, western Honduras sat at the southeastern edge of the great Mayan civilization. The ruins at Copan attest to the advanced state of development of the country’s population at the time. The large number of gold artifacts found in European museums demonstrate the abundance of gold located by the Mayans. The real conquest of Honduras began in 1524 and was characterized by bitter struggles among rivals representing Spanish power centers. Large population centers grew around gold mining areas, including Comayagua, Gracias, and Tegucigalpa, the country’s capital. By the end of the colonial period, Honduras was an important supplier of foodstuffs and livestock to El Salvador and Guatemala

In 1821, the country gained independence from Spain and, for the next century, conservative and liberal factions fought regional wars to control the republic. Over the past several decades, political control has vacillated back and forth between liberal and conservative parties, with any unrest caused mainly by the political instability in countries neighboring Honduras.

Honduras Today

Honduras is a member of the United Nations and the Organization of American States (OAS). Executive power in the country is vested in a president, who is elected by direct and universal vote for a four-year term. The president appoints a Cabinet to assist him. Honduras is also divided into 18 departments, which are subdivided into municipalities. Each department is administered by a governor, who is appointed by the president. Municipalities are governed by elected councils.

In 1998, shortly after hurricane Mitch, the Honduras Legislature passed a new mining law, the “Ley General de Mineria” with the intention of attracting foreign capital to further develop its mineral resources.

In 2009, the sitting President, Mel Zelaya attempted to stage a coup by illegally trying to gain power to amend the constitution and stay in office for life. He was trying to forge a government much like Hugo Chavez, his idol. Fortunately, the freedom loving people of Honduras were not willing to give up. The sitting President`s actions were declared illegal twice by the Supreme Court of Honduras and when he ignored them, the military intervened and exiled President Mel Zelaya to Costa Rica. The military immediately ceded power to the next in command under Honduran law, the leader of the Congress, Mr. Robert Micheletti. He was sworn in as the new President and declared that the scheduled free elections in November, 2009 would go forward as planned. The elections were held and now President Porfino Lobososa is in office, who believes in foreign investment and has been active in encouraging the congress to pass a new mining law to give certainty to foreign investors to help drive new investment in Honduras.

It is hoped that with a change in government, the mining industry in Honduras can be revitalized. In the meantime, the Company is focusing its efforts on establishing good relationships with the local governments and in running a safe mining operation.