THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION (EU) 596/2014 AS IT FORMS PART OF DOMESTIC LAW IN THE UNITED KINGDOM BY VIRTUE OF THE EU (WITHDRAWAL) ACT 2018 ("MAR").
SURREY, BC / ACCESSWIRE / December 5, 2023 / On 22 November 2022, Condor Gold (AIM:CNR)(TSX:COG) announced that following a robust and economically attractive Bankable Feasibility Study, also known as a Feasibility Study, on the La India open pit, it appointed H&P Advisory Limited (Hannam and Partners) to seek a buyer for the assets of the Company. The last update on the sale of the Company's assets was via an RNS on 31 July 2023 and in the interims accounts on 7 September 2023. The current status is that the Company remains in receipt of five non-binding offers, with three site visits having been completed. Although none of the non-binding offers have progressed to firm proposals to date, the Company is in advanced discussions with 2 gold producers. There are currently eight companies under Non-Disclosure Agreements (NDAs).
£1M Raise Via The Exercise of Warrants
The Company also announces that Galloway Limited, a company wholly owned by Burnbrae Group Limited which is, in turn, wholly owned by Jim Mellon, Condor's Chairman, has sent the Company a signed notice for the exercise of warrants which will result in the issue of 6,666,667 New Ordinary Shares at an issue price of £0.15 per new ordinary share, for a total consideration of £1M, which has now been received.
Application has been made for the New Ordinary Shares to be admitted to trading on AIM. Admission of the New Ordinary Shares is expected to take place on 15 December 2023. The Company has prior approval for the Shares to be listed on the Toronto Stock Exchange ("TSX").
The Company is in discussions with other shareholders who have expressed interest in investing alongside the Chariman and largest shareholder on the same terms, notably, via a small placement of new ordinary shares at £0.15 per new ordinary share. An update will be provided shortly.
Director/PDMR Shareholding
Galloway Limited will hold 49,769,148 Ordinary Shares representing 25.63% of the Company's issued ordinary shares post exercise of the warrants. Galloway Limited is wholly owned by Burnbrae Group Limited which is, in turn, wholly owned by Jim Mellon, Condor's Chairman. Denham Eke, a Non-Executive Director, is also a director of the Burnbrae Group Limited and Galloway Limited.
Total Voting Rights
Following the issue of the 6,666,667 New Ordinary Shares to Galloway Limited, Condor's total issued share capital will comprise 194,194,158 New Ordinary Shares, each with voting rights (the "Enlarged Issued Share Capital"). This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, securities of the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.
Jim Mellon, Chairman of Condor Gold, commented:
"I continue to be impressed with the asset sale process. We are very aware of the value of our assets and will maximise value for all shareholders. My investment of a further £1M is designed to ensure sufficient financial runway during the sales process until a desired price is achieved."
Mark Child, CEO of Condor Gold Commented:
"Wholly owned, fully permitted, construction ready gold mines with potential production of 150,000 oz gold per annum, in major Gold Districts, with the land and a new SAG Mill package purchased and a construction period of only 18 months are rare. To date there are eight companies under NDAs, five non-binding offers received and three site visits completed. Companies under NDAs have access to a virtual data room, which includes all drill data, technical studies to Feasibility Study level, details of permits to construct and operate a mine and financial models.
Although none of the non-binding offers have progressed to firm proposals to date, the Company is in advanced discussions with 2 gold producers The sales process is taking longer than anticipated, but the Board is anticipating that further progress will be made in the New Year. Investors will be updated in due course."
Cautionary Statement: Investors should note that, whilst the Board is encouraged by the process to date, there can be no guarantee that the Company will complete the sale of its assets.
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