London gold miner raises £4.1m with new ordinary shares

Condor Gold PLC announced a placing of 11,714,286 Units at 35p each, including a directors & CFO subscription of 2,972,144 Units, for aggregate gross proceeds of £4.1m before expenses.

The placing has been undertaken by the company and its brokers with institutional and other investors. Completion of the placing is conditional upon receipt of funds by close of business on October 29 2021 and admission of the Units to trading on AIM, expected to be on or around November 2 2021.

Mark Child, chairman and chief executive officer of Condor, commented: “Condor Gold has conducted a private placement, issuing new ordinary shares representing 8.7 per cent of the company’s existing issued share capital, to raise gross proceeds of £4.1m.

“The placement proceeds will be primarily used to complete a Feasibility Study, increasing the confidence of the Project, incorporating a Feasibility Level engineering design, and +/- 15 per cent capital and operating costs.This in turn will facilitate the securing of Project financing ahead of Project construction.

“The other use of proceeds is to pay the balance of a new SAG Mill, which is now 80 per cent in Nicaragua and advance the site clearance and preparation for the processing plant. Condor’s base case is to produce 100,000 oz gold p.a. before materially expanding production”.

Each unit consists of one ordinary share of 20p each in the company and one-half of one Ordinary Share purchase warrant (each whole Ordinary Share purchase warrant).

Each warrant, which is unlisted and fully transferable, will entitle the holder to purchase one ordinary share at a price of 50p for a period of 24 months from the date on which the shares are issued pursuant to the placing.

50 per cent of the warrants shall be subject to an accelerated exercise period if the closing mid-market price of the Ordinary Shares on AIM is more than 60p for 10 consecutive trading days.

As part of the placing, the company advises that through the directors & CFO subscription, four directors of the company, Mark Child, Andrew Cheatle, Ian Stalker and Jim Mellon, and John Seaberg (chief financial officer), have subscribed for 15,000, 14,286, 71,429, 2,857,143 and 14,286 units, respectively, for a total of 2,972,144 units.

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