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Gold & silver

Condor Gold raises £4.1mln through private placement

"The placement proceeds will be primarily used to complete a Feasibility Study"

Condor Gold raised £4.1mln through a placing at 35p of shares and warrants.

Mark Child, chairman and chief executive, said: "Condor Gold has conducted a private placement, issuing new ordinary shares representing 8.7% of the company's existing issued share capital, to raise gross proceeds of £4.1 million.

"The placement proceeds will be primarily used to complete a feasibility study, increasing the confidence of the Project (La India gold project in Nicaragua), incorporating a feasibility level engineering design, and +/- 15% 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% 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".

Four directors, including Child, subscribed for 25% of the shares issued.

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