/NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TSXV: LCO
US Symbol: ECNRF
VANCOUVER,
Feb. 12, 2013 /CNW/ - El Condor
Minerals Inc. ("El Condor" or the "Company") is
pleased to announce that it has completed its previously announced
$2,000,000 financing (the
"Financing"). $733,500
of the Financing was completed pursuant to a non-brokered private
placement of 14,670,000 common shares at a price of $0.05 per common share (the "Equity
Financing"). The sole subscriber in the Equity Financing
was Sheridan Platinum Group Ltd. ("Sheridan") who, as a
result of the Equity Financing, is now an "insider" of the Company
pursuant to applicable securities laws.
The remaining amount of the Financing was
completed by way of debt financing (the "Debt
Financing"). $866,500 of
the Debt Financing was advanced under a non-convertible loan
granted by Sheridan, and $400,000 was
advanced under a convertible loan by an arm's-length third party.
Each of the two concurrent loans are for a term of five years, bear
interest at a rate of 5% per annum, payable quarterly, and are
secured against the assets of the Company. All or a portion
of the principal amount of the convertible loan is convertible for
common shares in the Company at the price of $0.10 per common share, in whole or in part at
the lender's option, at any time during the 5-year term.
However should the 20-day average trading price of the common
shares of the Company on the TSX Venture Exchange exceed
$1.00, the lender will be obliged to
convert the outstanding loan principal to common shares of the
Company at the price of $0.10 per
share. Both of the loans also include a demand provision
whereby the lenders can demand repayment at any time after the
second anniversary of closing upon 120 days' notice duly given to
the Company.
In connection with the Financing, the Company
has agreed to issue 1,600,000 common shares and 800,000 warrants
(each, a "Finder's Warrants") to a finder. Each
Finder's Warrant is exercisable to acquire an additional common
share of the Company at an exercise price of $0.10 until February 8,
2015.
All securities issued pursuant to the Financing
are subject to a statutory hold period expiring on June 9, 2013. The proceeds from the
Financing have been used to retire a $2,000,000 debt of the Company.
About El Condor Minerals Inc.
El Condor Minerals Inc. is currently developing
the Horden Lake Cu-Ni Project, an advanced exploration stage
copper-nickel deposit in Quebec.
Horden Lake is a NI 43-101 compliant resource calculated effective
April 2009 using the Ordinary Kriging
method and a 0.5% copper cut-off, with 8,759,200 Indicated Tonnes
at 0.88% Cu and 0.21% Ni and 7,791,195 Inferred Tonnes at 0.87% Cu
and 0.25% Ni. The resource is unbounded at depth as well as along
both its northeasterly and southwesterly strike extensions, where
historic drilling by INCO continues to intersect the
mineralization.
Additional information on El Condor, its
properties and its exploration and development activities is
available at the Company's website: www.elcondorminerals.com.
ON BEHALF OF THE BOARD OF DIRECTORS
"Leigh W. Freeman"
President & CEO
This news release does not constitute an
offer to sell or a solicitation of an offer to buy any of the
securities in the United
States. The securities have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act") or any state securities laws
and may not be offered or sold within the
United States or to a U.S. Person unless registered under
the U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available.
FORWARD LOOKING STATEMENTS: This press
release contains forward-looking statements. Forward-looking
statements are statements that are not historical facts and are
generally, but not always, identified by the words "expects",
"plans", "anticipates", "believes", "intends", "estimates",
"projects", "potential" and similar expressions, or that events or
conditions "will", "would", "may", "could" or "should" occur.
Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and actual
results may differ materially from those in forward looking
statements. Forward-looking statements are based on the
beliefs, estimates and opinions of the Company's management on the
date such statements were made. The Company expressly
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE El Condor Minerals Inc.