(Alliance News) - Condor Gold PLC said on Monday it will place shares on both London's Alternate Investment Market and Toronto's Stock Exchange in order to fund the mining company's La India gold project.
Condor will raise GBP4.0 million from the placement of 20.2 million shares, priced at 20.00 pence each as the company aims to produce 100,000 ounces per year from the Nicaraguan open pit.
Chair and Chief Executive Mark Child said: "The proceeds will also be used to meet conditions of the environmental permit including the completion of engineering and other technical studies and for the acquisition of some or all of land for the mine site infrastructure.
"I would like to thank Jim Mellon, my fellow director and shareholder for his staunch support and providing the lead order of GBP1.25 million for the placing and several other existing shareholders who have participated in the placing."
In February, the company similarly posted 7.3 million units in a private placing, at 24.00p each and raised GBP1.8 million. The pricing is a slight hike from the 30-day weighted average of 18.2p on July 5.
Child and three other directors, Andrew Cheatle, Jim Mellon - who are both non-executives - and Chief Financial Officer Jeffrey Karoly all purchased shares. Miner Nicaraguan Milling Company Ltd, also purchased shares.
Mellon owns a 14.9% stake, Child 4.4% stake while both Cheatle and Karoly's shares represent 0.1% of the company's issued share capital. Nicaraguan Milling's shares total 10.4%.
La India's land package increased by 29% to 588 square kilometers last week after the firm said it was granted a "major" exploration concession by the Nicaraguan government.
Shares in Condor Gold were down 1.8% at 19.15 pence in London on Monday.
Condor Gold (CNR)