Condor Gold issues update on recent funding

Shares in AIM-listed gold and silver exploration company Condor Gold dipped slightly on Friday after the company issued an update on a recent fundraising.

Shares in AIM-listed gold and silver exploration company Condor Gold dipped slightly on Friday after the company issued an update on a recent fundraising.

On February 15th, the company - which is focused on proving a large commercial open pit and underground reserve on its La India Project in Nicaragua - announced that it had raised up to £10m before expenses by way of a subscription agreement with Regent Pacific Group.

Condor reported that the placing was then divided into three parts with the placement monies for parts one and two totaling £7.0m before expenses received by the company.

The company said that the third part involved a subscription by Regent Pacific Group for a further 1.88m new ordinary shares for cash at a price of £1.60 per share for a consideration of £3.0m subject to the investor's completion of confirmatory due diligence including a site visit to the investor's sole satisfaction.

Mark Child, Chairman and Chief Executive Officer of Condor Gold commented: "The company has been in negotiations with Regent regarding the Further Placement whereby Regent [Regent Pacific Group] had offered to invest a further £3.0m on revised terms at a share price which reflected current market conditions.

"However, agreement could not be reached on those revised terms. As a consequence, Regent informed the company on March 22nd 2013 that it had decided not to subscribe for additional shares in Condor at this time."

Condor Gold is fully funded with £8.4m cash and is in a strong position to complete its planned work programme, the company said.

Regent Pacific Group holds 3.58m ordinary shares in the company representing 9.45% of the company's issued share capital. There are currently 37.87m ordinary shares in issue.

Condor Gold's share price was down 3.68% to 144p at 14:37 on Friday.

MF

Recommended

Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021
Share tips of the week – 17 September
Share tips

Share tips of the week – 17 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Sep 2021
Royal Mail will deliver for investors – here's how to play it
Trading

Royal Mail will deliver for investors – here's how to play it

Royal Mail Group has found its feet in the past 18 months and looks cheap. Matthew Partridge looks at how to trade the shares.
14 Sep 2021
The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021

Most Popular

Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
Should investors be worried about stagflation?
US Economy

Should investors be worried about stagflation?

The latest US employment data has raised the ugly spectre of “stagflation” – weak growth and high inflation. John Stepek looks at what’s going on and …
6 Sep 2021
How you can profit from the power of the grey pound
Share tips

How you can profit from the power of the grey pound

Higher life expectancy and surging asset prices have proved a boon for the baby-boomer generation, which has accumulated vast wealth. Younger generati…
10 Sep 2021