The placement included 7.29 million units, including one ordinary share of 20p per share and half a share purchase warrant, at a price of 24p each, a discount of 6.7% to the closing mid-market price on January 31. 

 

Each warrant allows its holder to buy one ordinary share at a price of 31p/share, a 29% premium to the placing price, for two years from the date the placement shares are admitted to trading on AIM.

 

The placement included a subscription of a combined 3.22 million units by three directors - CEO and chairman Mark Child, and non-executive directors Andrew Cheatle and Jim Mellon - and the CFO Jeffrey Karoly.

 

Condor said it had received conditional approval from the Toronto Stock Exchange for the placing. 

 

Child said the issued new ordinary shares represented 11% of Condor's existing issued share capital.

 

Condor was recently granted La India's environmental permit, allowing it to construct and operate a 2,800 tonne per day processing plant with capacity to produce 100,000 ounces per annum of gold.

 

"The proceeds will also be used to conduct engineering and other technical studies required to determine the economic and technical feasibility of entering production much earlier by mining a 'mini pit' within the permitted La India openpit and processing the contained metal through nearby processing plants," he said.

 

Child added that the proceeds would also be used to apply for permits for two satellite feeder pits - the Mestiza openpit and the America openpit.