15th Mar 2021 10:13
(Alliance News) - Condor Gold PLC on Monday announced it has entered an agreement to purchase a complete new semiautogenenuous mill package from First Majestic Silver Corp for USD6.5 million.
A semiautogenenuous mill circuit uses the ore itself in the grinding process, with large chunks of ore being uses to grind smaller chunks.
The gold explorer and mine developer in Nicaragua said the acquisition price comprises the issue of USD3.0 million shares at 50 pence per share to First Majestic, with the remaining USD3.5 million paid in cash over the next three to four months.
Shares in Condor Gold were up 9.2% at 50.25p in London on Monday. It has a GBP66 million market capitalisation.
Condor said the mill package represents a "key" item of the plant required to bring its La India project in Nicaragua into production.
The package is estimated by technical support group of Metso Outotec, a manufacturer of grinding mills and systems, to have a throughput of up to 2,300 tonnes per day on a sustained basis using the existing motor. This is based on the metallurgical characteristics of the ore and mineralised material at the La India project, Condor said.
"Increasing the motor size would increase throughput to 2,850 tonnes per day. Initial gold production is expected to be between 80,000 to 100,000 ounces of gold per annum. The new SAG mill forms stage one of production. The aim is to materially expand production capacity after two to three years," said Condor Chair & Chief Executive Mark Child.
By Zoe Wickens; [email protected]
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