RE:RE:The leaked article... Got it this time:
A mining group in which the financier Nick Candy is the largest shareholder is poised to swoop on a London-listed gold explorer to create an enlarged group worth more than £150m.
Sky News has learnt that Metals Exploration, which is also quoted on the junior AIM market, is close to agreeing a cash-and-stock deal to acquire Condor Gold, an exploration and development company focused on Nicaragua in Central America.
Mining industry sources said a deal could be announced as soon as this week at a substantial premium to Condor Gold's current valuation.
If confirmed, it would be a further step towards the ongoing consolidation play taking place among the world's gold miners, including smaller listed companies.
Metals Exploration, which is about 35%-owned by Mr Candy, the prominent property entrepreneur, is focused on gold assets in the Philippines, and is the owner of the Runruno project in the north of the country.
One source close to the talks with Condor Gold said that Metals Exploration had secured irrevocable undertakings from a number of Condor Gold investors in recent days to vote in favour of the proposed deal.
Condor Gold is backed by Jim Mellon, a well-known London stock market investor.
Mr Mellon has also been the company's chairman for the past two years.
Metals Exploration, shares of which have more than doubled in the past 12 months, has a market capitalisation of just under £100m.
Shares in Condor Gold have risen by two-thirds over the same period, giving it a valuation of about £47m.
Metals Exploration declined to comment on Sunday, while Condor Gold has been contacted for comment.