The money raised will be used to advance the La India gold project in Nicaragua further towards production.
“The placement was oversubscribed,” said Mark Child, chairman of Condor.
“Following the placement Condor will have a net cash position of approximately £8 mln. The placement has been conducted quickly following an offer by Jim Mellon, Condor’s largest shareholder, to invest a further £2mln in the company. The board decided to accept a further £2mln primarily from existing shareholders.”
The company also plans to expand the resource base at La India.
Following the permitting of the Mestiza and America open pits, together with the La India open pit, Condor has 1.12mln ounces of gold in open pit mineral resources permitted for extraction, inclusive of a 675,000 reserve.
“The placement proceeds will be used to complete engineering and other technical studies, purchase the remaining 5% of the land in and around the minesite infrastructure, place a deposit on a processing plant, finance a 4,000 metre infill drilling program currently underway, with two drill rigs within the high grade starter pits within the permitted la India open pit,” added Child.
“The extra cash also allows Condor to continue with exploration activity aimed at demonstrating the potential for a 5mln ounce gold district at La India.”