2nd Dec 2024 11:44
(Alliance News) - Philippines-focused mineral resources firm Metals Exploration PLC on Monday confirmed a GBP67.5 million bid for fellow London listing Condor Gold PLC.
Metals Exploration, which is backed by property financier Nick Candy, said it is offering 4.0526 shares and 9.9 pence in cash for each Condor share.
Metals Exploration said based on its closing share price on Friday, the offer values each Condor share at 33.0p or GBP67.5 million in total.
In addition, each Condor shareholder would be entitled to receive one contingent value right, which would entitle them to their pro rata share of USD18.00 per ounce of additional contained gold JORC mineral resource discovered in excess of Condor's base case mineral resource estimate at the group's La India, Rio Luna and Estrella projects.
The maximum potential CVR consideration payable would amount to USD28.8 million representing 11.1p per Condor share.
Galloway Ltd, which holds a just under 25% stake in Condor, has backed the offer. Galloway is owned owned by Condor Chair Jim Mellon.
Metals Exploration owns the Runruno gold project in northern Philippines.
In a statement on Sunday, Condor said it received two non-binding offers, one from Metals Exploration and another from Toronto-listed Calibre Mining Corp. Calibre on Monday, however, said it does not plan to make an offer for Condor.
On Monday, shares in Condor Gold were up 23% to 29.40 pence each in London, giving it a market value of GBP58.4 million. Earlier Monday, the stock set a new 52-week high of 37.00p. Metals Exploration traded 8.8% lower at 5.20p for a market capitalisation of GBP90.3 million.
Metals Exploration on Monday announced it entered into an unsecured bridging term loan facility worth GBP5.5 million with Drachs Investments No 3 Ltd. The financing is in connection with its possible Condor buy. It carries a 10% annual interest rate. Metals Exploration noted Drachs owns just over 18% of its shares.
Condor Gold on Monday said it has entered into an unsecured term loan facility with Galloway Ltd for up to GBP475,000.
Galloway Ltd is owned by Burnbrae Group Ltd which is, in turn, wholly owned by Jim Mellon, Condor's chair.
Around GBP200,000 of the loan facility is available from November 4 and GBP275,000 available from Monday. Any amount of the facility not drawn down by the end of the year will automatically be cancelled.
Proceeds are for general working capital purposes.
By Jeremy Cutler, Alliance News reporter
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