Condor directors pile in on the cheap

Gold explorer Condor Resources, which last week announced an independent study had deemed its La India project in Nicaragua is economically viable, has raised funds through a share placing.

The company raised £2.5m through a placing of 50m new ordinary shares at a price of 5p each. That's a discount of 0.75p, or 13%, to the closing mid-market price of Condor on the day before the placing was announced, and a price too good to resist for three directors, including Chairman Mark Child.

Child put his hand in his pocket and splashed out £25,000 on half a million shares, taking his stake in the company up to 11.3%.

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Roger Davey, a non-executive director (NED), purchased 400,000 ordinary shares and Galloway Limited, a company owned by a trust of which Jim Mellon, another NED, is a beneficiary, purchased 5m shares in the company.

The company did not say what the newly raised funds would be used for, but it has previously announced planned expenditure of $4m in 2012 on an exploration programme at the La India project, where it is trying to prove large commercial reserves.

The company also expects to complete the La India scopring study this year and, all being well, will then proceed with the pre-feasability study.

Condor resources had fallen a quarter of a penny to 5.50p by 12:46, having dipped a low as 5.25p in the morning session.

BS/jh