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LONDON (Alliance News) - Condor Gold PLC on Friday said it has conducted a private placing and raised GBP1.8 million to advance its La India gold project in Nicaragua.
The placing consisted of 7.3 million units at a price of 24 pence per unit. Every unit consists of one ordinary share and half of one share purchase warrant of the company. Each warrant is unlisted and transferable, and entitles the holder to buy one ordinary share for 31p.
Shares in Condor Gold were flat at 25.75p on Friday.
Condor Gold Chair & Chief Executive Mark Child subscribed for 41,667 units; Chief Financial Officer Jeffrey Karoly subscribed for 25,000 units; Non-Executive Director Andrew Cheatle subscribed for 30,000 units; and fellow Non-Executive Director Jim Mellon for 3.1 million shares.
Melon also subscribed for 3.1 million units - this time consisting of 3.1 million shares and 1.6 million warrants - via Galloway Ltd for a total of GBP750,000. Following this, Mellon's beneficial interest will be 7.8 million shares or 10.5% in the company. This acquisition is dependent on receipt of additional funds by Condor Gold by February 22.
The placing shares represent 11% of the company's issued share capital and following admission Condor Gold will have 74.5 million shares including the Mellon shares.
"The placement proceeds will be used to advance the La India Project towards production following the grant of an environmental permit to construct and operate a 2,800 tonne per day processing plant with capacity to produce 100,000 ounces of gold per annum. The proceeds will also be used to conduct engineering and other technical studies required to determine the economic and technical feasibility of entering production much earlier by mining a 'mini pit' within the permitted La India open pit and processing the contained metal through nearby processing plants," said Child.
Proceeds will also be used to apply for permits to create two satellite feeder pits at La India.