Deals



Condor Acquires Concession and extends La India Project by 86 sq km to 280 sq km


Posted: 5th February 2013 08:30

Condor (AIM:CNR), a gold exploration company focused on delineating a large commercial reserve on its 100%-owned, CIM compliant Mineral Resource of 2,375,000 oz gold at 4.6g/t at La India Project in Nicaragua, is pleased to announce the acquisition of 100% of the 86.4 sq km 'HEMCO-SRP-NS' Concession (the "HEMCO Concession") from HEMCO Nicaragua SA ("HEMCO") for a consideration of US$275,000 payable by way of issuing new ordinary shares in Condor Gold plc at £2.00 per share.. The acquisition of the HEMCO Concession increases the Company's La India Project area to 280 sq km from 194 sq km
 
Highlights
 
Mark Child, Chairman and CEO commented:
 
"The purchase of the 86sq km HEMCO-SRP-NS concession (the "HEMCO Concession") on the eastern edge of La India Project is part of Condor's strategy of consolidating the sub surface mineral rights around the 2.4m oz gold resource on La India Project. The dominant trend of the quartz veins that comprise La India Project is from the North-West to the South-East. Preliminary field work by Condor's geologists indicates that the veins within the America Vein Set which hosts a resource of 405,000 oz gold at 6.0g/t and the Mestiza Vein Set which hosts a resource of 334,000 oz gold at 7.0g/t are open to the North West and trend into the HEMCO Concession. Four target areas have been indentified for further exploration within the HEMCO Concession. See Figures 1 and 2 below.
 
HEMCO Nicaragua S.A. (HEMCO) owns and operates the Bonanza gold mine in Nicaragua, which produced circa 50,000 oz gold in 2012. I am pleased with HEMCO's vote of confidence by agreeing to accept the US$275,000 purchase consideration in shares of Condor Gold plc, at a premium to the market price."
 
 
The 8,639.28 Hectare Concession is located adjacent and to the north and west of Condor's wholly owned El Rodeo and La India Concessions (see Figure 1 below), along strike to the northwest of the main America and Mestiza Vein Set trends, covering a potential additional 13km strike length. Gold mineralisation has been recorded in rockchip samples within 600m of the southern boundary of the Concession, however there is very little known historic exploration activity on the concession area itself.
 
Four areas of quartz veining were identified during reconnaissance exploration carried out by Condor geologists as part of due diligence prior to signing the agreement and these areas will form the initial exploration targets (see Figure 2 below). The existence of extensive quartz veining along strike of the La India epithermal gold District suggests that there is potential for the discovery of economic gold mineralisation. Condor plans to extend geological mapping over the Concession and plans to undertake first pass regional exploration appropriate to the geological terrain, which may include satellite image interpretation, geophysics, stream and surface geochemical sampling.
 
The principal terms of the purchase of the Concession are:

1.   US$275,000 payable by way of issuing new ordinary shares in Condor Gold plc once authorisation of the assignment of the Concession in favour of Condor is issued by the Director General of the Department of Mines, such authorisation has been received.
2.   Condor has 14 business days to issue the said shares at £2.00 per share. Accordingly, 87,330 new ordinary shares will be issued and admitted to AIM on 11th February 2013
3.   Payment of US$7.00 per ounce of gold of proven and probable reserves as defined under the CIM Standards, during the time that Condor holds the Concession, payable in shares of Condor Gold plc.Condor (AIM:CNR), a gold exploration company focused on delineating a large commercial reserve on its 100%-owned, CIM compliant Mineral Resource of 2,375,000 oz gold at 4.6g/t at La India Project in Nicaragua, is pleased to announce the acquisition of 100% of the 86.4 sq km 'HEMCO-SRP-NS' Concession (the "HEMCO Concession") from HEMCO Nicaragua SA ("HEMCO") for a consideration of US$275,000 payable by way of issuing new ordinary shares in Condor Gold plc at £2.00 per share.. The acquisition of the HEMCO Concession increases the Company's La India Project area to 280 sq km from 194 sq km
 
Highlights
   
Mark Child, Chairman and CEO commented:
 
"The purchase of the 86sq km HEMCO-SRP-NS concession (the "HEMCO Concession") on the eastern edge of La India Project is part of Condor's strategy of consolidating the sub surface mineral rights around the 2.4m oz gold resource on La India Project. The dominant trend of the quartz veins that comprise La India Project is from the North-West to the South-East. Preliminary field work by Condor's geologists indicates that the veins within the America Vein Set which hosts a resource of 405,000 oz gold at 6.0g/t and the Mestiza Vein Set which hosts a resource of 334,000 oz gold at 7.0g/t are open to the North West and trend into the HEMCO Concession. Four target areas have been indentified for further exploration within the HEMCO Concession. See Figures 1 and 2 below.
 
HEMCO Nicaragua S.A. (HEMCO) owns and operates the Bonanza gold mine in Nicaragua, which produced circa 50,000 oz gold in 2012. I am pleased with HEMCO's vote of confidence by agreeing to accept the US$275,000 purchase consideration in shares of Condor Gold plc, at a premium to the market price."
 
The 8,639.28 Hectare Concession is located adjacent and to the north and west of Condor's wholly owned El Rodeo and La India Concessions (see Figure 1 below), along strike to the northwest of the main America and Mestiza Vein Set trends, covering a potential additional 13km strike length. Gold mineralisation has been recorded in rockchip samples within 600m of the southern boundary of the Concession, however there is very little known historic exploration activity on the concession area itself.
 
Four areas of quartz veining were identified during reconnaissance exploration carried out by Condor geologists as part of due diligence prior to signing the agreement and these areas will form the initial exploration targets (see Figure 2 below). The existence of extensive quartz veining along strike of the La India epithermal gold District suggests that there is potential for the discovery of economic gold mineralisation. Condor plans to extend geological mapping over the Concession and plans to undertake first pass regional exploration appropriate to the geological terrain, which may include satellite image interpretation, geophysics, stream and surface geochemical sampling.
 
The principal terms of the purchase of the Concession are:

1.   US$275,000 payable by way of issuing new ordinary shares in Condor Gold plc once authorisation of the assignment of the Concession in favour of Condor is issued by the Director General of the Department of Mines, such authorisation has been received.
2.   Condor has 14 business days to issue the said shares at £2.00 per share. Accordingly, 87,330 new ordinary shares will be issued and admitted to AIM on 11th February 2013
3.   Payment of US$7.00 per ounce of gold of proven and probable reserves as defined under the CIM Standards, during the time that Condor holds the Concession, payable in shares of Condor Gold plc.

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