Condor Gold raises £6.6m in private placing

Condor Gold announced a placing of 18,082,192 units at a price of 36.5p each on Thursday, including a directors and chief financial officer’s subscription of 2,361,917 units, to raise gross proceeds of £6.6m before expenses.

The TSX-V and AIM-traded firm said the placing had been undertaken with institutional and other investors, and was oversubscribed.

Completion remained conditional on admission of the placing shares to trading on AIM, with the company having received conditional approval from the Toronto Stock Exchange for the placing.

Condor noted that the price represented a discount of 17.6% to the volume-weighted-average price over the 20 trading days prior to Thursday.

It explained that each unit comprised one ordinary share and one half of one share purchase warrant.

Each warrant, which was unlisted and fully transferable, would entitle the holder to purchase one ordinary share at a price of 40p for 36 months from the date of issue.

It said 50% of the warrants would be subject to an accelerated exercise period if the closing mid-market price of the ordinary shares on AIM is more than 55p for 10 consecutive trading days.

“The placement proceeds will be used to advance the La India Project towards production,” said chairman and chief executive officer Mark Child.

“Condor has a high grade 1.12 million ounce gold open pit mineral resource, including mineral reserves permitted for extraction from three open pits.

“A processing plant and associated mine site infrastructure is also permitted.”

Child said the proceeds would be used to complete engineering and other technical studies, purchase land in and around the mine site infrastructure, and place a deposit on a processing plant.

“Condor's intention is to permit the 1.2 million ounce gold underground mineral resource following the commencement of open pit production, and continue with exploration activity to demonstrate a five million ounce Gold District at La India Project.”

At 1235 BST, shares in Condor Gold were down 13.78% at 42.25p.