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

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Will a second wave of Covid lead to another stockmarket crash?
Stockmarkets

Will a second wave of Covid lead to another stockmarket crash?

Can we expect to see another lockdown like in March, and what will that mean for your money? John Stepek explains.
18 Sep 2020
Here’s why you really should own at least some bitcoin
Bitcoin

Here’s why you really should own at least some bitcoin

While bitcoin is having a quiet year – at least in relative terms – its potential to become the default cash system for the internet is undiminished, …
16 Sep 2020
James Ferguson: How bad data is driving fear of a second wave of Covid-19
UK Economy

James Ferguson: How bad data is driving fear of a second wave of Covid-19

Merryn and John talk to MoneyWeek regular James Ferguson about the rise in infections in coronavirus and what the data is really telling us.
17 Sep 2020