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.

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.

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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