Orford Mining Corp. said June 11 that it agreed to acquire private company Condor Precious Metals Inc. and its two royalties in Colombia in a share-swap deal.
Under the terms of the agreement, Condor shareholders will receive 0.073 share of Orford for each Condor share, along with a one-quarter share purchase warrant for every Orford share issuing at closing. The warrants will be exercisable at 29 Canadian cents per Orford share within two years.
A total of 5,043,096 Orford common shares and 1,260,774 Orford warrants will be issued. The common shares were valued at approximately C$1.1 million, based on their June 7 closing price.
Orford noted that the two royalties apply to a previously owned exploration property in Colombia.
Condor has a marketable balance of C$1.25 million, including C$663,122 in cash, and Orford President and CEO David Christie said the transaction will give the company "a significant hard dollar cash balance" to fund exploration at the Carolina gold projects.
In addition, Orford entered into lock-up agreements for approximately 49% of Condor's outstanding shares. Condor will now hold a shareholder vote to approve the transaction at a special meeting, and subject to the approval of the TSX Venture Exchange, the agreement is expected to close in July.
