Sale Of Shares in Grafton Res

RNS Number : 0854V

Condor Resources PLC

27 October 2010

 

Condor Resources PLC

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

27 October 2010

Condor Resources Plc

("Condor" or "the Company")

Sale of Shares in Grafton Resource Investments Limited ("Grafton")

On 26 October 2010 Condor sold its shareholding in Grafton to a company ("the Buyer")  introduced by personnel at Grafton for a net cash consideration of US$1,110,760.

Condor acquired its shares in Grafton on 12 June 2009 at an aggregate value of £1,400,000 as part of a share swap arrangement. Grafton sold its shares in Condor on 30 July 2010. The sale by Condor of its shares in Grafton unwinds the share swap.

 Condor has realised a total paper loss on its investment in Grafton of £878,000, being a loss of £807,000 on the difference in the purchase and sale price plus an exchange rate loss of £71,000.

Condor had been looking for a buyer for these shares for several months and, given the desire to raise funds for verification drilling and trenching at the recently acquired La India concession and the lack of liquidity in Grafton shares, the board of Condor considered that it would be in the best interests of shareholders to take the opportunity offered to it by the Buyer.

Mark Child, Chairman of Condor, commented as follows:

"I am really pleased to have sold Condor's shareholding in Grafton for a net consideration of US$1,110,760. The sale proceeds have been received in cleared funds by Condor and will be kept in USD as the operating expenses in Nicaragua and El Salvador are USD based. The share swap in June 2009 was conducted at roughly double the share price that Condor's shares had been trading at in the previous weeks. This was negotiated in the knowledge that closed end investment funds such as Grafton can trade at substantial discounts to NAV. Selling Grafton shares, which were a non core asset, creates a paper loss, but provides cash to help fund the conversion of an estimated 1.84m oz gold resource at 9g/t, calculated to Russian standards to JORC Code on Condor's 80% owned La India project in Nicaragua."

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

Condor Resources plc                               Mark Child, Chairman

                                                                   [phone]

Ambrian Partners Limited                            Richard Swindells and

                                                                     Samantha Harrison

                                                                     [phone]

Farm Street Media                                       Simon Robinson

                                                                     [phone]

About Condor Resources Plc:

Condor Resources plc is an AIM listed exploration company focused on developing gold and silver resource projects in Central America.  The Company was admitted to AIM on 31^st May 2006 with the stated strategy to prove up JORC Resources in Nicaragua and El Salvador.  Condor has four 100% owned licenses and 80% of La India concession in  La India Mining District, three 100% owned licences in three other project areas and 20% in the Cerro Qiroz concession in Nicaragua.  In El Salvador, Condor has 100% ownership of four licences in two project areas.

Since Admission to AIM, Condor has increased its JORC compliant inferred resources from 350,000 ounces of gold and 18 million ounces of silver to 788,000 ounces of gold and 22 million ounces of silver.  The Resource calculations are compiled by independent geologists Ravensgate and Geosure.

This information is provided by RNS

The company news service from the London Stock Exchange

 

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