Condor Gold Regulatory News (CNR)

15 Feb 2007 13:16

Condor Resources PLC15 February 2007 15th February, 2007 Condor Resources plc ("Condor" or "the Company") Corporate Update Renegotiated Terms for the El Potosi Project Option Agreement Condor Resources Plc (AIM: CNR) is pleased to report the successfulrenegotiation of its Memorandum of Understanding ("MOU") with Brett ResourcesInc. of Canada (TSX Venture Exchange - BBR) ("Brett Resources") for the optionto acquire the El Potosi concession in El Salvador. Under the terms of the new Restated Option Agreement, Condor may still earn a100% interest in the El Potosi concession, but has deferred the final cashpayment of US$1,250,000 that was due on the 24th August 2006 under the originalMOU to 24th August 2007, by negotiating the new contract to allow an orderly andfull investigation of the project to be undertaken. Condor's key obligations under the Restated Option Agreement are to: • Pay US$50,000 on signing the new agreement; • Issue 500,000 new ordinary shares in Condor to Brett Resources; • Incur expenditure costs of US$250,000 on the El Potosi licenceprior to 24th August 2007; • Report quarterly to Brett Resources on all activities completedand planned for the concession area; and • Maintain the concession in good standing with El Salvadoranauthorities. Condor may again defer the final cash payment of US$1,250,000 to 24th August2008, by: • Giving written notice to Brett Resources that it will defer thecash payment prior to the anniversary date. • Making a payment to Brett Resources of US$150,000, of whichUS$100,000 can be settled through issuing new ordinary shares in Condor to BrettResources. • Incurring exploration expenditures of US$250,000 on the ElPotosi concession between 25th August 2007 and 24th August 2008. Once Condor has satisfied the terms of the Restated Option Agreement BrettResources will retain a 1% Net Smelter Royalty on all gold and silver producedafter an initial 200,000 ounces of gold has been recovered from the project. Condor has initiated an eight hole diamond drilling program on the El Potosilicence to further test some of the better intersections encountered in the 2004drilling campaign, which included intercepts of 5.35m of 22.15g/t gold in HQcore and 5m of 9.23g/t gold in Reverse Circulation chips (as announced on 17thAugust 2006). The program will also include trenching and follow up drilling onsome of the less well defined targets within the Capulin prospect area, lyingsome 800m southeast of the main El Potosi prospect and historical workings. Application has been made for the 500,000 new ordinary shares issued to BrettResources (as described above) to be admitted to trading on the AIM market. Thenew ordinary shares will rank pari passu with the existing ordinary shares of0.1p each in the Company and dealings in these new ordinary shares are expectedto commence on 21 February 2007. The total number of ordinary shares in issue following this issue will be130,311,753. Ends Enquiries: Condor Resources Plc Mark Child, Chairman +44 20 7408 1067 Nigel Ferguson, CEO +61 8 9240 7227 Nabarro Wells & Co. Limited Hugh Oram +44 20 7710 7400 Anthony Rowland +44 20 7710 7419 Mirabaud Securities Limited Rory Scott +44 20 7878 3360 Parkgreen Communications Limited Lindsay Bancroft Clare Irvine +44 20 7851 7480 This information is provided by RNS The company news service from the London Stock Exchange