IFC Exercises Non Dilute Clause

RNS Number : 3979Y

Condor Gold PLC

17 May 2016

 

	Condor Gold plc
	7th Floor
	39 St. James's Street
	London
	SW1A 1JD
	Telephone [phone]
	Fax: [phone]

17^th May 2016

Condor Gold plc

(''Condor'' or "the Company")

The IFC Exercises Non Dilute Clause for £240,000 Increasing Placement Proceeds to £2.818million

Condor (AIM:CNR), is pleased to announce that further to the placing announced on 4^th April 2016 (see RNS), which raised £2.578million (the 'Placing"), the International Finance Corporation (the "IFC"), the private sector arm of the World Bank, has exercised a non-dilute clause contained in a shareholder's agreement entered into between the IFC and the Company at the time of the IFC's initial investment of £3.51million (see RNS dated 27^th October 2014). The IFC is subscribing for 600,000 Units (as defined below) on the same terms as the Placing for a gross consideration of £0.24million (the "IFC Subscription"). The Company has therefore raised gross proceeds of £2.818M being the sum of the proceeds of the Placing and the IFC Subscription.

Details of the Placing

The Company completed a placement as principal of 6,445,000 Units (comprising of 6,445,000 ordinary shares and 4,296,667 Warrants) as announced on 4^th April 2016 at a price of 40p per Unit (the "Placing Price") and raised gross proceeds of approximately £2.6million. The lead investor in the placing was Ross Beaty who subscribed for £1.5million worth of Units. Mr Beaty's investment followed a site visit and technical due diligence. Mr Beaty is a Canadian mining entrepreneur with a successful track record of both building mining companies and developing mineral deposits for sale.

The Placing shares have been admitted to AIM. Each Unit comprised of one ordinary share of 20p each in the Company ("Placing Share") and two thirds of one share purchase warrant of the Company (a "Warrant"). Each Warrant, which is unlisted, entitles the holder thereof to purchase one ordinary share at a price of 60p (which is at a 50% premium to the Placing Price) for a period of 24 months from the date on which the shares issued pursuant to the Placing were admitted to trading on AIM (the "Closing Date").

The IFC Subscription is for 600,000 Units (comprising of 600,000 ordinary shares and 400,000 Warrants) on the same terms as the Placing, for a gross consideration of £0.24M. The Company has therefore raised gross proceeds of £2.818million being the sum of the proceeds of the Placing and the IFC Subscription.

The completion of the IFC Subscription is conditional, inter alia, upon admission of the 600,000 ordinary shares (the "IFC Placing Shares") subscribed for by the IFC being admitted to AIM. Application is being made for the IFC Placing Shares, to be admitted to trading on AIM ("Admission"), such Admission is expected to occur on or around 31^st May 2016. Following Admission the IFC will maintain an 8.5% shareholding in the Company being 4,500,000 ordinary shares.

On Admission the Placing Shares will rank pari passu in all respects with the existing ordinary shares of the Company, including the right to receive all dividends and other distributions declared after the date of their issue. 

Following Admission the Company will then have 52,852,316 ordinary shares of 20p each in issue with voting rights and admitted to trading on AIM. This figure may then be used by shareholders in the Company as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

For further information please visit www.condorgold.com or contact:

 - Ends -

For further information please visit www.condorgold.com or contact:

Condor Gold plc	Mark Child, Executive Chairman and CEO [phone]
Beaumont Cornish Limited Numis Securities Limited	Roland Cornish and James Biddle [phone] John Prior and James Black [phone]
Farm Street Media	Simon Robinson [phone]

About Condor Gold plc:

Condor Gold plc was admitted to AIM on 31^st May 2006. The Company is a gold exploration and development company with a focus on Central America.

Condor completed a Pre-Feasibility Study (PFS) and two Preliminary Economic Assessments (PEA) on La India Project in Nicaragua in December 2014. The PFS details an open pit gold mineral reserve of 6.9M tonnes at 3.0g/t gold for 675,000 oz gold producing 80,000 oz gold p.a. for 7 years. The PEA for the open pit only scenario details 100,000 oz gold production p.a. for 8 years whereas the PEA for a combination of open pit and underground details 140,000 oz gold production p.a. for 8 years. La India Project contains a total attributable mineral resource of 18.4Mt at 3.9g/t for 2.33M oz gold and 2.68M oz silver at 6.2g/t to the CIM Code.

In El Salvador, Condor has an attributable 1,004,000 oz gold equivalent at 2.6g/t JORC compliant resource. The resource calculations are compiled by independent geologists SRK Consulting (UK) Limited for Nicaragua and Ravensgate and Geosure for El Salvador.

Disclaimer

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

 

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