TIDMCNR
RNS Number : 2447X
Condor Gold PLC
20 February 2017
Condor Gold plc
7(th) Floor
39 St. James's Street
London
SW1A 1JD
Telephone +44 020 74932784
Fax: +44 020 74938633
20(th) February 2017
Condor Gold plc
("Condor", "Condor Gold" or "the Company")
Condor Gold raises GBP5.242 million. Lead Investor Ross
Beaty
Condor (AIM:CNR), is pleased to announce a placing ("the
Placing") of 8,293,443 Units (as defined below) at a price of 62p
per Unit (the "Placing Price") together with a proposed Director's
subscription of 161,290 Units ("Director's Subscription") to raise
in aggregate gross proceeds of approximately GBP5.242 million. The
Placing has been undertaken by the Company with institutional and
other investors. The completion of the Placing and proposed
Director's Subscription is conditional, inter alia, upon admission
of the Placing Shares to trading on AIM.
Each Unit comprises one ordinary share of 20p each in the
Company ("Placing Share") and half of one share purchase warrant of
the Company (a "Warrant"). Each Warrant, which is unlisted and
fully transferable, will entitle the holder thereof to purchase one
ordinary share at a price of 93p (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 million worth of Units and will increase his
shareholding to 8.74% in the Company's share capital on a post
placement undiluted basis. Mr Beaty is a Canadian mining
entrepreneur with a successful track record of both building mining
companies and developing mineral deposits for sale.
Background to and reasons for the Placing
The net proceeds of the Placing and proposed Director's
Subscription amounts to approximately GBP4.9 million. It will be
used for general working capital purposes and to continue with the
strategy to fully permit Mina La India in Nicaragua for a 2,800tpd
processing plant with capacity to produce 100,000 oz gold p.a.,
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 2.4 million oz gold resource
at 4.0g/t gold at La India Project via scout drilling on new
exploration targets that have never been drilled and expand some of
the existing resource areas.
Details of the Placing and proposed Director's Subscription
The Company has conducted the Placing as principal. A total of
8,454,733 Units (comprising of 8,454,733 ordinary shares and
4,227,364 Warrants) have been placed with placees and are proposed
to be subscribed at the Placing Price to raise gross proceeds of
GBP 5,241,934.46.
The completion of the Placing is conditional, inter alia, upon
admission of the Placing Shares to trading on AIM. The Placing
Price of 62 pence per share represents a discount of 4.6% percent
to the closing price of 65 pence per share on 17(th) February
2017.
In addition, the Company advises that one director of the
Company, namely Jim Mellon, intends to subscribe for a total of
161,290 shares on the same terms (the "Director's Shares") for a
further sum of GBP99,999.80 following the announcement of the
Placing.
Application is being made for the Placing Shares and Director's
Shares, to be admitted to trading on AIM ("Admission"), such
Admission is expected to occur on or around 28(th) February
2017.
On Admission the Placing Shares and Director's 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 of the Placing Shares and Director's Shares,
the Company will then have 61,365,382 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.
Special note concerning the Market Abuse Regulation
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No 596/2014
("MAR"). Market soundings, as defined in MAR, were taken in respect
of the Placing, with the result that certain persons became aware
of inside information, as permitted by MAR. That inside information
is set out in this announcement. Therefore, those persons that
received inside information in a market sounding are no longer in
possession of inside information relating to the Company and its
securities.
A further announcement will be made shortly.
- Ends -
For further information please visit www.condorgold.com or
contact:
Condor Gold plc Mark Child, Executive
Chairman and CEO
+44 (0) 20 7493 2784
Beaumont Cornish Roland Cornish and
Limited James Biddle
+44 (0) 20 7628 3396
Numis Securities
Limited John Prior and James
Black
+44 (0) 20 7260
1000
Farm Street Media Simon Robinson
+44 (0) 7593 340107
About Condor Gold plc:
Condor Gold plc was admitted to AIM on 31st 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 6.9 Mt at 3.0 g/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 18.08 Mt
at 4.0 g/t for 2.31 M oz gold and 2.68 M oz silver at 6.2 g/t to
the CIM Code.
In El Salvador, Condor has an attributable 1,004,000 oz gold
equivalent at 2.6 g/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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