Placing of New Ordinary Share

RNS Number : 7099X

Condor Resources PLC

27 June 2008

 



Condor Resources Plc 1 Warwick Row London SW1E 5ER  Telephone [phone]  Fax: [phone]

CONDOR RESOURCES PLC

('Condor' or 'the Company')

Placing of New Ordinary Shares

The Company has raised £2,000,000 before expenses by way of a placing of 200,000,000 new ordinary shares with a nominal value of £0.01 each at 1p each ('the Placing').

The placees are high net worth individuals, who are a mixture of non associated investors and existing shareholders. Galloway Limited maintains a 12.4% shareholding and Oracle Management Limited maintains a 4.6% shareholding in the Company post placement.

The Chairman, Mark Child, is subscribing for 9,000,000 new ordinary shares in the Placing, increasing his shareholding to 11,000,000 ordinary shares (representing 3.3 per cent. of the total voting rights following completion of the Placing). With the exception of Mr Child, who is involved in the transaction as a related party, the directors of Condor consider, having consulted with the Company's nominated adviser, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned. 

Application will be made for the new Ordinary Shares to be admitted to trading on the AIM market of the London Stock Exchange plc and PLUS Markets. Dealings are expected to commence on 11 July 2008. The shares will rank pari pasu with existing ordinary shares in issue. Following completion of the Placing, there will be 330,311,753 Ordinary Shares of £0.01 in issue.

As part of the commissions and fees associated with the Placing, the Company has agreed to issue warrants to subscribe for 47,500,000 new ordinary shares. The warrants are exercisable at any time during the three years following their issue. 27,500,000 warrants are exercisable at a price of 1p per share, 10,000,000 warrants are exercisable at a price of 1.5p per share and 10,000,000 warrants are exercisable at a price of 2p per share.

Commenting on the placement, Mark Child, Chairman said: 'I am delighted that Condor has raised £2m with the support of existing shareholders. This ends a period of financial uncertainty for the Company and provides the funds to continue exploration activity in Nicaragua and maintain its licences in El Salvador whilst the Ministry of the Economy undertakes a Strategic Environmental Evaluation Study on the benefit of mining to the country. As a result the Ministry of Environment and Natural Resources (MARN) ceasing to issue environmental permits to allow trenching and drilling activities, Condor has not been permitted to drill on its key projects. The new funding will also allow Condor to diversify its geographical interests in natural resource projects.'

 - Ends - 

For further information:

Condor Resources Plc	Mark Child, Chairman  [phone]	Nigel Ferguson, CEO [phone]
Nabarro Wells & Co. Limited	Hugh Oram [phone]
Farm Street Media	Simon Robinson +078 8798 5671

27 June 2008

About Condor Resources Plc:

Condor Resources Plc was admitted to AIM on 31st May 2006 raising £4.9m. Condor is a mineral exploration company focused on El Salvador and Nicaragua. The Company has 100% ownership of four licences in two project areas in El Salvador. It withdrew from the El Potosi project in 2007. Condor also has four 100% owned licences and the option to earn an 80% interest in a further four licences contained within four project areas in Nicaragua.

An independent competent person's report prepared by Ravensgate and included in the Company's Admission Document stating JORC compliant resources of 354,500 ounces of gold and 18.3 million ounces of silver. Subsequent mineral resource calculation statement in December 2006 by Ravensgate, and in January 2008, February 2008 and May 2008 by Geosure, has raised the combined global resource estimates as defined by JORC Code standards to some 891,000 ounces of gold and 22.3 million ounces of silver within two project areas. 

The Company's objective is to prove up significant gold and silver resources of between 1 to 2 million ounces of gold and 30 to 50 million ounces of silver to JORC reportable standards. The Company intends to continue to drill test targets within its Project areas as required by each prospect. Drilling is expected to commence in El Salvador upon granting of the necessary Environmental Permits by the Ministry of Environment. 

 

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