Condor Gold plc chairman Jim Mellon exercised warrants for £1 million to ensure the company has sufficient money during the sales process for La India open pit in Nicaragua.
OFFERS
The exercise over 6,666,667 new ordinary shares, each at an issue price of £0.15, was by Galloway Ltd, owned by Burnbrae Group Ltd which is, in turn, owned by Mr Mellon.
Galloway Ltd will hold 49,769,148 ordinary shares representing 25.63% of the company’s issued ordinary shares.
Condor non-executive director Denham Eke is also a director of the Burnbrae Group Ltd and Galloway Ltd.
Following the issue of the new ordinary shares, Condor’s total issued share capital will comprise 194,194,158 new ordinary shares, each with voting rights.
In November 2022 La India was placed on sale and currently has five non-binding offers, completed three site visits, and is in advanced discussions with two gold producers.
Eight companies are under non-disclosure agreements.
Mr Mellon, the company’s largest shareholder, said he continued to be impressed with the asset sale process.
“We are very aware of the value of our assets and will maximise value for all shareholders.
“My investment of a further £1m is designed to ensure sufficient financial runway during the sales process until a desired price is achieved.”
Condor added it was in discussions with other shareholders interested in investing alongside Mr Mellon on the same terms via a “small placement”.