Nicaragua-focused gold explorer Condor Gold (LON:CNR) is considering all options including a sale of the company in a strategic review of where it goes from here.
Cormark Securities has been appointed to explore the alternatives after Condor’s management concluded the equity requirement of the US$170mln capital needed for a mine at its flagship La India Project would be significantly dilutive. There was no guarantee it could arrange debt financing, Condor added.
La India has a resource of 18.1m tonnes at 4.0g/t containing 2.32M oz gold.
Condor has also decided not to go ahead with a definitive feasibility study (DFS) at La India, as, if it is sold, any study would be heavily reviewed by the acquirer.
Instead, work will continue on an environmental permit, surface exploration and optimisation studies on the existing resource.
The sale of the Condor’s assets in El Salvador is another possibility.