(Alliance News) - Condor Gold PLC said on Wednesday its interim loss was narrowed by a fall in administrative expenses, and it has made progress in the development of its La India mine in Nicaragua.
In the six months to June 30, the gold exploration and development company posted a pretax loss of GBP652,458 improved from GBP1.3 million the year before.
Administrative costs fell by 33% to GBP522,584 from GBP822,184. Condor Gold does not yet generate revenue.
Total assets fell marginally year-on-year to GBP21.9 million from GBP22.1 million, although they did rise 3% from GBP21.3 million in December.
During the recent half-year, the company raised GBP1.8 million in a private share placement and since then has raised a further GBP4.1 million through a placing. The proceeds from the placing were used to fund the development of the company's La India gold project. The project is estimated to produce 600,000 ounces of gold over a six to seven year period.
In August 2018, Condor received an environmental permit from Nicaraguan regulators for the La India project, and Condor said that during the first half of 2019, progress was made in fulfilling the terms of the permit.
Some of the requests from the regulator included Condor building a tailings storage facility, which would be used to store uneconomical ore, and conducting further hydrogeological studies for the supply of water to the processing plant and the mine's offices.
Wastewater system plans for the offices have been approved by the Ministry of the Environment and Natural Resources, Condor said.
The size of the project was increased to 587.7 square kilometres in July after it received an exploration and mining approval for the Cerro Los Cerritos concession.
Chair and Chief Executive Mark Child said: " The reason for acquiring this concession is that Condor's geologists interpret that it hosts the strike extension of existing gold mineralisation at La India Project. The grant of this important concession demonstrates the continued pro-mining stance of the government of Nicaragua.
"The company has made good progress in the six-month period and continues to de-risk the La India project by fulfilling conditions of the permit to construct and operate a new mine at La India. Gold production at the project is being materially expanded by applying for environmental permits to extract gold from two high-grade."
Shares in Condor were up 1.3% at 23.50 pence each in London on Wednesday afternoon.
Condor Gold (CNR)