Condor Gold reaches settlement in four-year royalty dispute

(ShareCast News) - Gold exploration company Condor Gold announced on Friday that it has reached terms of a settlement with B2Gold Corporation and Royal Gold over a disputed net smelter return royalty (NSR) over part of Condor's flagship La India Project in Nicaragua.The AIM-traded firm also confirmed it is acquiring from B2Gold around 3,508 hectares of land surface rights which cover the area of the estimated mineral resource and reserves and the proposed mine site infrastructure.It said the NSR settlement clears the way for the project to advance towards the construction of a 1Mtpa processing plant with capacity to produce 100,000 oz gold per annum from a single open pit.The purchase of land surface rights from B2Gold also removes another obstacle, and allows the project to progress."I am pleased to have negotiated the terms of the settlement over a 3% NSR on part of Condor's La India Project," said Condor CEO Mark Child."It ends four years of litigation in the Canadian and Nicaragua courts with B2Gold and Royal Gold, [and] it clears the way to progress Mina La India to construction by providing clarity to potential funding partners over a protracted NSR dispute."Chile said he was equally pleased to have acquired surface rights in respect of 3,508 hectares of land from B2Gold, which covers the area of the mine site infrastructure required for the base case 1Mtpa processing plant."The purchase of the land surface rights removes an obstacle to construction, not least because B2Gold undertook litigation against Condor in Nicaragua in relation to these rights."The purchase of land surface rights will facilitate negotiations with local land owners and allows the project to progress forming part of Condor's strategy of de-risking the Project and achieving a clear path to production."