Condor Gold PLC's (AIM:CNR, TSX:COG, OTC:CNDGF) board has accepted a cash and share offer worth £67.5 million from Nick Candy-backed Metals Exploration PLC (AIM:MTL).
Under the terms of the Offer, each Condor Gold shareholder will get 4.0526 New MTL Shares, 9.9p in cash and 1 Contingent Value Right (CVR).
In total, the consideration amounts to approximately 33p per Condor Gold share.
The CVR gives shareholders a pro-rata share of up to US$14.4 million from the first gold at the La India mining operations in Nicaragua.
On completion of the offer, Condor Gold shareholders will hold approximately 33.8% of the MTL’s enlarged share capital.
Payments due under the CVR will be settled by way of the issue of either new MTL Shares or unsecured loan notes with a maximum payable of US$28.8 million or 11.1p per Condor Gold share.
Shares in Condor eased 1.8% to 27.8p.