TIDMCNR
RNS Number : 9856T
Condor Gold PLC
04 April 2016
Condor Gold plc
7(th) Floor
39 St. James's Street
London
SW1A 1JD
Telephone +44 020 74081067
Fax: +44 020 74938633
4(th) April 2016
Condor Gold plc
("Condor" or "the Company")
Condor Gold raises GBP2.578 million by way of a Placing. Lead
Investor Ross Beaty
Condor (AIM:CNR), is pleased to announce a proposed placing
("the Placing") 6,445,000 Units (as defined below) at a price of
40p per Unit (the "Placing Price") to raise gross proceeds of
approximately GBP2.6 million. The completion of the Placing is
conditional, inter alia, upon admission of the Placing Shares to
trading on AIM.
Each Unit is comprised of one ordinary share of 20p each in the
Company ("Placing Share") and two thirds of one share purchase
warrant of the Company (a "Warrant"). Each Warrant, which is
unlisted, will entitle the holder thereof to purchase one ordinary
share at a price of 60p (which is at a 50% premium to the Placing
Price) for a period of 24 months from the date on which the shares
issued pursuant to the Placing are admitted to trading on AIM (the
"Closing Date").
The Company is pleased to announce that Ross Beaty has
subscribed for GBP1.5 million worth of Units and will have a 7.18%
shareholding in the Company post placement on an undiluted basis.
The investment follows a site visit and technical due diligence. Mr
Beaty is a Canadian mining entrepreneur with a successful track
record of both building mining companies and developing mineral
deposits for sale. The Company has agreed to a non-dilute clause
for Mr Beaty's shareholding. The Company also welcomes a specialist
resource fund managed by an affiliate of Sprott Inc. as a
shareholder.
Background to and reasons for the Placing
The proceeds of the Placing will be used for general working
capital purposes and specifically: to fully permit Mina La India in
Nicaragua, pay the remaining US$670,000 for the purchase of the
Espinito-Mendoza concession (see RNS dated 21 March 2016), secure
the surface rights for the rural land that host and surround the
future mine infrastructure and continue work to demonstrate the
significant exploration upside of the 2.4M oz gold resource at
4.0g/t gold at La India Project.
As a general update on ongoing work on Mina La India: the
Company submitted an Environmental Impact Assessment ("EIA") to the
Ministry of the Environment in Nicaragua ("MARENA") in November
2015, applying for the key Environmental Permit for a 2,800tpd
processing plant capable of producing approximately 100,000 oz gold
per annum at an all in sustaining cash cost of approximately US$700
per oz gold. The Nicaraguan Government remains fully supportive of
permitting Mina La India. The EIA has passed the initial technical
reviews, MARENA has conducted site visits and key meetings have
been held with several Government Ministries. The Company has
incorporated a wholly owned Nicaraguan subsidiary company to
acquire the rural land; has surveyed, valued and made offers to buy
the surface rights for approximately 800 hectares of the area
affected by a future mine and is currently making good progress and
is securing the land by making 10% down payments with the balance
paid within 2 years; Condor will continue to demonstrate the
significant upside potential by expanding the soil survey
programmes that have covered approximately 90 sq km to date of the
313sq km La India Project, stratigraphic mapping, prospecting and
structural data collection.
Details of the Placing
The Company has conducted the Placing as principal. 6,445,000
Units (comprising of 6,445,000 ordinary shares and 4,296,667
Warrants) have been placed with placees and subscribers at the
Placing Price to raise gross proceeds of GBP 2,578,000.
The completion of the Placing is conditional, inter alia, upon
admission of the Placing Shares to trading on AIM. The Placing
Price of 40 pence per share represents a discount of zero percent
to the closing price of 40 pence per share on 1(st) April 2016.
Application is being made for the Placing Shares, to be admitted
to trading on AIM ("Admission"), such Admission is expected to
occur on or around 15(th) April 2016.
On Admission the Placing Shares will rank pari passu in all
respects with the existing ordinary shares of the Company,
including the right to receive all dividends and other
distributions declared after the date of their issue.
Following Admission the Company will then have 52,252,316
ordinary shares of 20p each in issue with voting rights and
admitted to trading on AIM. This figure may then be used by
shareholders in the Company as the denominator for the calculation
by which they will determine if they are required to notify their
interest in, or a change to their interest in, the share capital of
the Company under the Financial Conduct Authority's Disclosure and
Transparency Rules.
Director Participation
Pursuant to the Placing, Jim Mellon, Non-Executive Director of
the Company has subscribed personally for 500,000 Units at the
Placing Price. Following completion of the Placing, Mr Mellon will
have a direct interest in 698,820 ordinary shares and indirect
interest in 522,222 ordinary shares held through Galloway Limited.
Jim Mellon is the founder and a director of Regent Pacific Group,
which owns 3,977,274 shares. The combined interest of 5,198,318
ordinary shares represents a 9.95% shareholding in the Company post
placement on an undiluted basis. Jim Mellon will have a direct and
indirect interest in 419,444 Warrants post placement.
Mark Child, Chairman and CEO of the Company has subscribed for
25,000 Units at the Placing Price. Following completion of the
Placing, Mr Child will be interested in 3,967,500 ordinary shares
in the Company, representing approximately 7.59% of its issued
share capital as enlarged by the Placing, and will also have an
interest in 16,667 Warrants. Roger Davey, Non-Executive Director of
the Company has subscribed for 20,000 Units at the Placing Price.
Following completion of the Placing, Mr Davey will be interested in
52,500 ordinary shares in the Company, representing approximately
0.10% of its issued share capital as enlarged by the Placing, and
will also have an interest in 13,333 Warrants. The subscriptions by
Jim Mellon, Mark Child and Roger Davey are a related party
transaction under the AIM Rules and accordingly the independent
directors, being Kate Harcourt and Peter Flindell, confirm that,
having consulted with the Company's Nominated Adviser, the terms of
the Placing are fair and reasonable insofar as the Company's
shareholders are concerned.
For further information please visit www.condorgold.com or
contact:
- Ends -
For further information please visit www.condorgold.com or
contact:
Condor Gold plc Mark Child, Executive
Chairman and CEO
+44 (0) 20 7408 1067
Beaumont Cornish Roland Cornish and
Limited James Biddle
+44 (0) 20 7628 3396
Numis Securities
Limited John Prior and James
Black
+44 (0) 20 72601000
Farm Street Media Simon Robinson
+44 (0) 7593 340107
About Condor Gold plc:
Condor Gold plc was admitted to AIM on 31(st) May 2006. The
Company is a gold exploration and development company with a focus
on Central America.
Condor completed a Pre-Feasibility Study (PFS) and two
Preliminary Economic Assessments (PEA) on La India Project in
Nicaragua in December 2014. The PFS details an open pit gold
mineral reserve of 6.9M tonnes at 3.0g/t gold for 675,000 oz gold
producing 80,000 oz gold p.a. for 7 years. The PEA for the open pit
only scenario details 100,000 oz gold production p.a. for 8 years
whereas the PEA for a combination of open pit and underground
details 140,000 oz gold production p.a. for 8 years. La India
Project contains a total attributable mineral resource of 18.4Mt at
3.9g/t for 2.33M oz gold and 2.68M oz silver at 6.2g/t to the CIM
Code.
In El Salvador, Condor has an attributable 1,004,000 oz gold
equivalent at 2.6g/t JORC compliant resource. The resource
calculations are compiled by independent geologists SRK Consulting
(UK) Limited for Nicaragua and Ravensgate and Geosure for El
Salvador.
Disclaimer
Neither the contents of the Company's website nor the contents
of any website accessible from hyperlinks on the Company's website
(or any other website) is incorporated into, or forms part of, this
announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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