LONDON (Alliance News) - Condor Gold PLC, the AIM-listed gold exploration company, on Monday said it raised GBP2.6 million in a placing led by Canadian mining entrepreneur Ross Beaty.
The fundraising will be used to "fully permit" Mina La India in Nicaragua, pay the remaining USD670,000 for the purchase of the Espinito-Mendoza concession at the La India project, secure the surface rights for the rural land that host and surround the future mine infrastructure and continue work to demonstrate the significant exploration upside of the 2.4 million ounces gold resource at 4.0 grams per tonne gold at the La India project.
In a statement, the AIM-listed company said it is raising the money by placing 6.4 million units, comprising 6.4 million shares and 4.3 million warrants. Each unit is comprised of one share and two thirds of a warrant. Each warrant will give the holder the right to buy one share at 60p per share, a premium to the 40p placing price, for 24 months from the data on which the placing shares begin trading on AIM.
Shares in Condor were up 6.4% at 41.50 pence on Monday morning.
Ross Beaty subscribed for GBP1.5 million worth of units and will have a 7.2% shareholding in the company following the placing on an undiluted basis. The investment follows a site visit and technical due diligence, Condor Gold said. The company said it agreed to a non-dilute clause for Beaty's 7.2% stake.
The company also said it welcomed specialist resource fund managed by an affiliate of alternative asset manager Sprott Inc as a shareholder.
Non-Executive Director Jim Mellon personally subscribed for 500,000 units. On completion of the placing, he will have a direct interest in 698,820 shares, plus an indirect interest in 522,222 shares held through Galloway Ltd. He is the founder and a director of Regent Pacific Group, which owns about 4.0 million shares in Condor Gold. In total, that makes a total of about 5.2 million shares, equal to just shy of 10% of Condor Gold. Mellon will have a direct and indirect interest in 419,444 warrants following the placing.
Mark Child, chairman and chief executive officer of Condor, subscribed for 25,000 units. He will be interested in about 4.0 million shares in the company, equivalent to a 7.6% stake, following the placing. He will have an interest in 16,667 warrants.
Roger Davey, a non-executive director, subscribed for 20,000 units, and will have an interest in 52,500 shares in Condor, representing a 0.10% stake, and will have an interest in 13,333 warrants.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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Condor Gold (CNR)