Condor Gold PLC (AIM:CNR, TSX:COG, OTC:CNDGF) said it raised about £3.25mln via a private placement to help fund a feasibility study for the La India project in Nicaragua.
The placement represented about 7.9% of the company's existing issued shares.
It placed 11.6mln units, including a directors’ subscription of 1.8mln units, at 28p each with institutional and other investors. Each unit comprised one ordinary share and one-half of an ordinary share purchase warrant.
“The placement proceeds will be primarily used to complete a feasibility study at the La India project, increasing the confidence of the project, incorporating a feasibility level engineering design, and +/- 15% capital and operating costs,” said chairman and chief executive Mark Child.
Child subscribed for 30,000 units for £8,400, taking his shareholding in the company to 2.7% once the shares are admitted to AIM.
Fund manager and Condor Gold non-executive director Jim Mellon subscribed for almost 1.79mln units for £500,000, which will take his direct and indirect holding in the company to about 18.7%.
Shares in Condor were down 9.8% at 27.50 pence in early trading.