The transaction is a good win for Orford as it will take control of Condor's C$1.25 million in marketable securities that includes $663,122 in cash.
"This transaction gives Orford a significant hard dollar cash balance that will be used to fund exploration at our Carolina gold projects and for general corporate purposes. The acquisition of Condor allows Orford to add hard dollars to its balance sheet in a cost-effective manner," president and CEO David Christie said.
Under terms of the transaction, Condor shareholders will receive 0.073 Orford shares for each Condor share held, along with 0.25 of a share purchase warrant for every share issued at closing.
Each whole warrant will allow the holder to buy an additional Orford share at a strike price of C29c apiece, for a period of two years. Orford will issue up to 5.04 million shares worth about C$1.1 million, based on the stock's closing price on June 7, and 1.26 million warrants.
The Condor board has unanimously approved the transaction, but the deal is still subject to Orford shareholder and stock exchange approval. If all goes well, the transaction is expected to close in July.
Orford is currently engaged in a significant summer drilling programme on its Qiqavik project, in the remote emerging gold belt of Cape Smith, in Northern Quebec, but says it will apply the bulk of the cash windfall to progress its two options on projects in Carolina, located at the same geological level and in the same rocks as the Haile, Ridgeway and Brewer deposits - known as the Band of Gold.
Orford has an option agreement with Carolina Gold Resources to earn up to a 70% interest in the Jones-Keystone/Loflin, and Landrum-Faulkner properties.
Orford also takes possession of two royalties on exploration property previously owned by Condor, in Colombia.