Condor Gold planning £5.24m fundraising to develop Nicaragua mine

The AIM-listed company is to place 8.29m shares at a price of 62p each, together with a proposed director's subscription of 161,290 shares, to raise about £5.24m with institutional and other investors.

Each unit comprises of one share of 20p each and half of a share purchase warrant of the company. The warrant is unlisted and fully transferable and will the investor to buy one share at a price of 93p for a period of 24 months.

The net proceeds of about £4.9m will be used enable the Mina La India 2,800 tonne per day processing plant to produce 100,000 ounces of gold per year and secure the surface rights for the rural land that hosts and surrounds the mine infrastructure.

The funds will also be used to demonstrate the exploration upside of the 2.4m ounce of gold resource at four grams per tonne of gold at the La India project through scout drilling on new exploration targets and expand some of the existing resource areas.

The shares are expected to be admitted to trade on AIM around 28 February and on admission, the company will have 61.36m in issue with voting rights.

Shares in Condor Gold were down 1.69% to 69.90p at 0948 GMT.