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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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
-
Should you invest in UK equities?The FTSE 100 hit a record high this week, but UK equities remain unloved and undervalued compared to their global and US peers. Should you snap them up at a discount?
-
State pension errors: DWP urged to check for mistakes among divorced peopleFormer pensions minister Steve Webb says there are a high number of divorced women on low state pensions. Now MPs want the DWP to check if there were any errors in “potentially underpaying men and women who are divorced”.
