LONDON (ShareCast) - (Sharecast News) - Condor Gold said on Friday that it had raised £4.1m to complete a feasibility study over its wholly-owned La India Project.
The AIM-traded firm said it raised the funds through the placing of 11,714,286 units at a price of 35p each, including a directors and chief financial officer subscription of 2,972,144 units.

It said the placing was undertaken by the company and its brokers with institutional and other investors.

Completion remained conditional on the receipt of funds by close of business on Friday, and admission of the units to trading on AIM, which was expected on or around 2 November.

Each unit would consist of one ordinary share in the company, and one-half of a share purchase warrant.

Each whole warrant, which was unlisted and fully transferable, would entitle the holder to purchase one share for 50p, for 24 months from the date the shares were issued under the placing.

The board said the proceeds would primarily be used to complete a feasibility study, increasing the confidence of the project, incorporating a feasibility-level engineering design, and around 15% in capital and operating costs.

That in turn would facilitate the securing of project financing ahead of construction.

The other use of proceeds was to pay the balance of a new SAG mill, which was now 80% in Nicaragua, and advance the site clearance and preparation for the processing plant.

"Condor Gold has conducted a private placement, issuing new ordinary shares representing 8.7% of the company's existing issued share capital, to raise gross proceeds of £4.1m," said chairman and chief executive officer Mark Child.

"The placement proceeds will be primarily used to complete a feasibility study, increasing the confidence of the project, incorporating a feasibility level engineering design, and 15% capital and operating costs."

Child said that in turn would facilitate the securing of project financing ahead of project construction, with the proceeds also being used to pay the balance of the new SAG mill that was 80% in Nicaragua.

"Condor's base case is to produce 100,000 ounces of gold per annum before materially expanding production."

At 1504 BST, shares in Condor Gold were down 10% at 35.1p.

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