Condor Gold plc announced it now held net cash of £8 million to further drilling, production and expansion of mineral resource at its La India project in Nicaragua.
The announcement follows an oversubscribed private placing which raised £4 million. bityl.co/5czD
Condor Gold’s chairman and chief executive Mark Child said that the company issued new ordinary shares representing 7.9% of existing issued share capital.
“The placement has been conducted quickly following an offer by Jim Mellon, Condor’s largest shareholder, to invest a further £2 million in the company. The board decided to accept further £2 million primarily from existing shareholders.
“The placement proceeds will be used to complete engineering and other technical studies, purchase the remaining 5% of the land in and around the mine site infrastructure, place a deposit on a processing plant, finance a 4,000m infill drilling programme currently underway with two drill rigs within the high grade starter pits within the permitted la India open pit.
“The extra cash also allows Condor to continue with exploration activity aimed at demonstrating the potential for a 5 million oz gold district at La India project: the company will commence a 5,000m drilling programme on the Cacao vein in the near future.”
Condor Gold has three open pits at La India: Mestiza, America and La India open pits which together hold 1.12M oz gold open pit mineral resources permitted for extraction, inclusive of a mineral reserve of 6.9Mt at 3.0g/t gold for 675,000 oz gold.
The La India project has total indicated mineral resources of 9.85Mt at a grade of 3.6 g/t gold, for a total contained ounces of 1,140,000 oz gold and total inferred mineral resources of 8.48Mt at a grade of 4.3 g/t gold, for a total contained ounces of 1,179,000 oz gold.
Condor Gold also has permits for a processing plant and associated mine site infrastructure.