Condor Gold Raises GBP2.5 Million In Placing As 2017 Loss Narrows (ALLISS)

23rd Mar 2018 12:34

LONDON (Alliance News) - Condor Gold PLC said Friday it raised GBP2.5 million through a share placing in order to fund the final development stages of its plant in Nicaragua as it announced full year losses narrowed due to lower costs and impairments.

In 2017, pretax loss narrowed to GBP3.0 million from GBP7.7 million the year prior. This was after GBP4.1 million in El Salvador asset impairments experienced in 2016 were not repeated in 2017. Administrative expenses also fell to GBP3.0 million from GBP3.6 million the year prior.

Condor did not generate any revenue in either years.

During the year, the company continued its gold exploration programme.

"Exploration activities during 2017 followed a dual approach of exploration or scout drilling which targeted new areas within the La India Project and regional exploration, primarily focussed on identifying targets for hidden deep-seated gold mineralisation," Condor Chairman and Chief Executive Officer Mark Child said.

In a separate announcement, Condor announced it will issue 5.2 million shares at 43 pence per share, with a further 616,279 shares subscribed to by directors at the same price. In total, 5.8 million shares will be issued.

Shares in Condor were 1.4% lower at 45.85 pence on Friday.

Half a share purchase warrant was also attached to each placed share. Each full warrant entitles holders to buy a share at a 65 pence exercising price for a period of 24 months after the shares are issued.

"Condor Gold has conducted a small private placement, issuing new ordinary shares representing 9.5% of the Company's existing issued share capital, to raise gross proceeds of GBP2.5 million, the overwhelming majority of the placement consideration is from existing shareholders," Child added. "The placement proceeds will be used to see the company through the final stages of permitting a 2,800 tonnes per day processing plant with capacity to produce 100,000 ounces gold per annum at La India Project, Nicaragua."

"On 26th February 2018," Child added, "the company announced it had re-designed the proposed mine site infrastructure at La India Project to avoid the resettlement of approximately 330 houses or 1,000 people and submitted an amendment to its Environmental and Social Impact Assessment, as part of the application for the Environmental Permit. There have subsequently been further meetings with senior Nicaraguan Ministers and a site visit inspection of the re-designed mine site infrastructure. The company believes it has made significant progress towards obtaining permits and we are in the final stages of the permitting process."

After admission - expected on April 4 - Condor will have 67.2 million shares outstanding.

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