Condor Gold Plcsaid April 4 that it has proposed a placing of 6,445,000 units at a price of 40pence per unit to raise gross proceeds of approximately £2.6 million.
Each unit consists of 1 ordinary share worth 20 pence and two-thirds of 1share purchase warrant. Each warrant will entitle the holder to purchaseadditional shares at 60 pence apiece for a period of 24 months from the date onwhich shares issued through the placement are admitted to trading on AIM.
The company also said that Canadian mining entrepreneur Ross Beaty hassubscribed for £1.5 million worth of units and will have 7.18% shareholding inthe company after the placement on an undiluted basis.
Proceeds from the placement will be used to fully permit Mina in Nicaragua andto pay the remaining US$670,000 for the purchase of the Espinito-Mendoza concession. Part of theproceeds will be spent to secure the surface rights for the rural land thathost and surround the future mine infrastructure and continue work todemonstrate the significant exploration upside of the 2.4 million ounce goldresource at 4 g/t of gold at the La India project, and for general workingcapital purposes.
The company expects AIM admission for the placement shares on or aboutApril 15.
The companysubmitted an Environmental Impact Assessment to the Ministry of the Environmentin Nicaragua in November 2015, applying for the key environmental permit for the 2,800tonnes per day Mina La India processing plant.
The plantis capable of producing approximately 100,000 ounces of gold per annum at anall-sustaining cash cost of approximately US$700 per ounce of gold.
Condor willcontinue to demonstrate the significant upside potential by expanding the soilsurvey programs that have covered approximately 90 square kilometers to date ofthe 313 square kilometer La India project and conducting stratigraphic mapping,prospecting and structural data collection, the company said.