TIDMCNR
RNS Number : 6361V
Condor Gold PLC
05 December 2023
Condor Gold plc
7/8 Innovation Place
Douglas Drive
Godalming
Surrey
GU7 1JX
Tel: +44 (0) 207 493 2784
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF REGULATION (EU) 596/2014 AS IT FORMS PART OF DOMESTIC LAW IN THE
UNITED KINGDOM BY VIRTUE OF THE EU (WITHDRAWAL) ACT 2018
("MAR").
5 December 2023
Condor Gold Plc
("Condor" or the "Company")
Condor Gold Provides an Update on the Sale of Assets
On 22 November 2022, Condor Gold (AIM: CNR; TSX: COG) announced
that following a robust and economically attractive Bankable
Feasibility Study, also known as a Feasibility Study, on the La
India open pit, it appointed H&P Advisory Limited (Hannam and
Partners) to seek a buyer for the assets of the Company. The last
update on the sale of the Company's assets was via an RNS on 31
July 2023 and in the interims accounts on 7 September 2023. The
current status is that the Company remains in receipt of five
non-binding offers, with three site visits having been completed.
Although none of the non-binding offers have progressed to firm
proposals to date, the Company is in advanced discussions with 2
gold producers. There are currently eight companies under
Non-Disclosure Agreements (NDAs).
GBP1M Raise Via The Exercise of Warrants
The Company also announces that Galloway Limited, a company
wholly owned by Burnbrae Group Limited which is, in turn, wholly
owned by Jim Mellon, Condor's Chairman, has sent the Company a
signed notice for the exercise of warrants which will result in the
issue of 6,666,667 New Ordinary Shares at an issue price of GBP0.15
per new ordinary share, for a total consideration of GBP1M, which
has now been received.
Application has been made for the New Ordinary Shares to be
admitted to trading on AIM. Admission of the New Ordinary Shares is
expected to take place on 15 December 2023. The Company has prior
approval for the Shares to be listed on the Toronto Stock Exchange
("TSX").
The Company is in discussions with other shareholders who have
expressed interest in investing alongside the Chariman and largest
shareholder on the same terms, notably, via a small placement of
new ordinary shares at GBP0.15 per new ordinary share. An update
will be provided shortly.
Director/PDMR Shareholding
Galloway Limited will hold 49,769,148 Ordinary Shares
representing 25.63% of the Company's issued ordinary shares post
exercise of the warrants. Galloway Limited is wholly owned by
Burnbrae Group Limited which is, in turn, wholly owned by Jim
Mellon, Condor's Chairman. Denham Eke, a Non-Executive Director, is
also a director of the Burnbrae Group Limited and Galloway
Limited.
Total Voting Rights
Following the issue of the 6,666,667 New Ordinary Shares to
Galloway Limited, Condor's total issued share capital will comprise
194,194,158 New Ordinary Shares, each with voting rights (the
"Enlarged Issued Share Capital"). This figure may be used by
shareholders as the denominator for the calculations by which they
will determine if they are required to notify their interest in, or
a change to their interest in, securities of the Company under the
Financial Conduct Authority's Disclosure and Transparency
Rules.
Jim Mellon, Chairman of Condor Gold, commented:
" I continue to be impressed with the asset sale process. We are
very aware of the value of our assets and will maximise value for
all shareholders. My investment of a further GBP1M is designed to
ensure sufficient financial runway during the sales process until a
desired price is achieved."
Mark Child, CEO of Condor Gold Commented:
"Wholly owned, fully permitted, construction ready gold mines
with potential production of 150,000 oz gold per annum, in major
Gold Districts, with the land and a new SAG Mill package purchased
and a construction period of only 18 months are rare. To date there
are eight companies under NDAs, five non-binding offers received
and three site visits completed. Companies under NDAs have access
to a virtual data room, which includes all drill data, technical
studies to Feasibility Study level, details of permits to construct
and operate a mine and financial models. Although none of the
non-binding offers have progressed to firm proposals to date, the
Company is in advanced discussions with 2 gold producers The sales
process is taking longer than anticipated, but the Board is
anticipating that further progress will be made in the New Year.
Investors will be updated in due course."
Cautionary Statement: Investors should note that, whilst the
Board is encouraged by the process to date, there can be no
guarantee that the Company will complete the sale of its
assets.
- Ends -
For further information please visit www.condorgold.com or
contact:
Condor Gold plc Mark Child, CEO
+44 (0) 20 7493 2784
Beaumont Cornish Limited Roland Cornish and James Biddle
+44 (0) 20 7628 3396
SP Angel Corporate Finance Ewan Leggat
LLP +44 (0) 20 3470 0470
H&P Advisory Limited Andrew Chubb, Matt Hasson, Jay Ashfield
+44 207 907 8500
Adelaide Capital (Investor Deborah Honig
Relations) +1-647-203-8793
About Condor Gold plc:
Condor Gold plc was admitted to AIM in May 2006 and dual listed
on the TSX in January 2018. The Company is a gold exploration and
development company with a focus on Nicaragua.
The Company's principal asset is La India Project, Nicaragua,
which comprises of a large, highly prospective land package of 588
sq km comprising of 12 contiguous and adjacent concessions. The
Company has filed a feasibility study technical report dated 25
October 2022 and entitled "Condor Gold Technical Report on the La
India Gold Project, Nicaragua, 2022" (the " 2022 FS ") which is
available on the Company's SEDAR profile at www.sedar.com and was
prepared in accordance with the requirements of NI 43-101. The 2022
FS indicated that La India Project hosts a high grade Mineral
Resource Estimate ("MRE") of 9,672 kt at 3.5g/t gold for 1,088,000
oz gold in the indicated mineral resource category and 8,642 kt at
4.3 g/t gold for 1,190,000 oz gold in the inferred mineral resource
category. The open pit MRE is 8,693 kt at 3.2 g/t gold for 893,000
oz gold in the indicated mineral resource category and 3,026 kt at
3.0 g/t gold for 291,000 oz gold in the inferred mineral resource
category. Total underground MRE is 979 kt at 6.2 g/t gold for
94,000 oz gold in the indicated mineral resource category and 5,615
kt at 5.0 g/t gold for 98,000 oz gold in the inferred mineral
resource category.
The 2022 FS replaces the previously reported Preliminary
Economic Assessment (" PEA ") as presented in the Technical Report
filed on SEDAR in October 2021 as the current technical report for
the La India project.
The 2021 PEA considered the expanded Project inclusive of the
exploitation of the Mineral Resources associated to the La India,
Mestiza, America and Central Breccia deposits. The strategic study
covers two scenarios: Scenario A, in which the mining is undertaken
from four open pits, termed La India, America, Mestiza and Central
Breccia Zone ("CBZ"), which targets a plant feed rate of 1.225
million tonnes per annum ("Mtpa"); and Scenario B, where the mining
is extended to include three underground operations at La India,
America and Mestiza, in which the processing rate is increased to
1.4 Mtpa. The 2021 PEA Scenario B presented a post-tax, post
upfront capital expenditure NPV of US$418 million, with an IRR of
54% and 12 month pay-back period, assuming a US$1,700 per oz gold
price, with average annual production of 150,000 oz gold per annum
for the initial 9 years of gold production. The open pit mine
schedules were optimised from designed pits, bringing higher grade
gold forward resulting in average annual production of 157,000 oz
gold in the first 2 years from open pit material and underground
mining funded out of cashflow. The 2021 PEA Scenario A presented a
post-tax, post upfront capital expenditure NPV of US$302 million,
with an IRR of 58% and 12 month pay-back period, assuming a
US$1,700 per oz gold price, with average annual production of
approximately 120,000 oz gold per annum for the initial 6 years of
gold production. The Mineral Resource estimate and associated
Preliminary Economic Assessment contained in the 2021 PEA are
considered a historical estimate within the meaning of NI 43-101, a
qualified person has not done sufficient work to classify such
historical estimate as current, and the Company is not treating the
historical Mineral Resource estimate and associated studies as
current, and the reader is cautioned not to rely upon this data as
such. Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability. The Company believes that the
historical Mineral Resource estimate and Preliminary Economic
assessment is relevant to the continuing development of the La
India Project.
In August 2018, the Company announced that the Ministry of the
Environment in Nicaragua had granted the Environmental Permit
("EP") for the development, construction and operation of a
processing plant with capacity to process up to 2,800 tonnes per
day at its wholly-owned La India gold Project ("La India Project").
The EP is considered the master permit for mining operations in
Nicaragua. Condor has purchased a new SAG Mill, which has mainly
arrived in Nicaragua. Site clearance and preparation is at an
advanced stage.
Environmental Permits were granted in April and May 2020 for the
Mestiza and America open pits respectively, both located close to
La India. The Mestiza open pit hosts 92 Kt at a grade of 12.1 g/t
gold (36,000 oz contained gold) in the Indicated Mineral Resource
category and 341 Kt at a grade of 7.7 g/t gold (85,000 oz contained
gold) in the Inferred Mineral Resource category. The America open
pit hosts 114 Kt at a grade of 8.1 g/t gold (30,000 oz) in the
Indicated Mineral Resource category and 677 Kt at a grade of 3.1
g/t gold (67,000 oz) in the Inferred Mineral Resource category.
Following the permitting of the Mestiza and America open pits,
together with the La India open pit Condor has 1.12 M oz gold open
pit Mineral Resources permitted for extraction.
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.
TSX Matters
The Company is relying on the exemption provided for pursuant to
Section 602.1 of the TSX Company Manual (the "Manual") from the
requirements of the Manual and the TSX relating to the issue of New
Shares Ordinary, including the requirements of Section 613 of the
Manual, as the Company is an "Eligible Interlisted Issuer" as
defined in the Manual.
Qualified Persons
The technical and scientific information in this press release
has been reviewed, verified and approved by Andrew Cheatle, P.Geo.,
a director of Condor Gold plc, and Gerald D. Crawford, P.E., the
Chief Technical Officer of Condor Gold plc, each of whom is a
"qualified person" as defined by NI 43-101.
Forward Looking Statements
All statements in this press release, other than statements of
historical fact, are 'forward-looking information' with respect to
the Company within the meaning of applicable securities laws,
including statements with respect to: future development and
production plans, projected capital and operating costs, mine life
and production rates, metal or mineral recovery estimates, Mineral
Resource, Mineral Reserve estimates at the La India Project, the
potential to convert Mineral Resources into Mineral Reserves. the
Company's plans to sell the assets of the Company or seek
alternatives to an asset sale and the construction timeline of the
La India project upon receipt of financing. Forward-looking
information is often, but not always, identified by the use of
words such as: "seek", "anticipate", "plan", "continue",
"strategies", "estimate", "expect", "project", "predict",
"potential", "targeting", "intends", "believe", "potential",
"could", "might", "will" and similar expressions. Forward-looking
information is not a guarantee of future performance and is based
upon a number of estimates and assumptions of management at the
date the statements are made including, among others, assumptions
regarding: future commodity prices and royalty regimes;
availability of skilled labour; timing and amount of capital
expenditures; future currency exchange and interest rates; the
impact of increasing competition; general conditions in economic
and financial markets; availability of drilling and related
equipment; effects of regulation by governmental agencies; the
receipt of required permits; royalty rates; future tax rates;
future operating costs; availability of future sources of funding;
ability to obtain financing and assumptions underlying estimates
related to adjusted funds from operations. Many assumptions are
based on factors and events that are not within the control of the
Company and there is no assurance they will prove to be
correct.
Such forward-looking information involves known and unknown
risks, which may cause the actual results to be materially
different from any future results expressed or implied by such
forward-looking information, including, risks related to: mineral
exploration, development and operating risks; estimation of
mineralisation and resources; environmental, health and safety
regulations of the resource industry; competitive conditions;
operational risks; liquidity and financing risks; funding risk;
exploration costs; uninsurable risks; conflicts of interest; risks
of operating in Nicaragua; government policy changes; ownership
risks; permitting and licencing risks; artisanal miners and
community relations; difficulty in enforcement of judgments; market
conditions; stress in the global economy; current global financial
condition; exchange rate and currency risks; commodity prices;
reliance on key personnel; dilution risk; payment of dividends; as
well as those factors discussed under the heading "Risk Factors" in
the Company's annual information form for the fiscal year ended
December 31, 2021 dated March 29, 2022 and available under the
Company's SEDAR profile at www.sedar.com .
Although the Company has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking information,
there may be other factors that cause actions, events or results
not to be as anticipated, estimated or intended. There can be no
assurance that such information will prove to be accurate as actual
results and future events could differ materially from those
anticipated in such statements. The Company disclaims any intention
or obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise
unless required by law.
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END
UPDVZLFBXLLEFBX
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