JOHANNESBURG (miningweekly.com) – UK-based project developer Condor Gold announced on Friday that it would raise £2.5-million in a placing of about 5.1-million units at £0.43 each, together with a proposed directors’ subscription of 616 279 units.

Two directors, Jim Mellon and Andrew Cheatle, have subscribed already, for a sum of £265 000 for the proposed units, following the announcement of the placing. Chairperson and CEO Mark Child has purchased 697 674 warrants at £0.01 a warrant for consideration of £6 976 from a subscriber to the placing.

The completion of the placing and proposed directors’ subscription is conditional, upon admission of the placing shares to trading on the AIM on, or around, April 4.

Further, Condor has received conditional approval from the TSX for the placing.

 “Condor has conducted a small private placement, issuing new ordinary shares representing 9.5% of the company's existing issued share capital, to raise the gross proceeds of £2.5-million, the overwhelming majority of the placement consideration is from existing shareholders,” said Child.

He added that the placement proceeds would be used to see the company through the final stages of permitting a 2 800 t/d processing plant with capacity to produce 100 000 oz/y gold at Condor’s La India project, in Nicaragua.

Child previously said that permitting progress has been frustrated by administrative delays.

On February 26, the company announced it had redesigned the proposed mine site infrastructure at La India to avoid the resettlement of about 330 houses, or 1 000 people, and submitted an amendment to its environmental and social impact assessment, as part of the application for the environmental permit.

“There have subsequently been further meetings with senior Nicaraguan Ministers and a site visit inspection of the redesigned mine site infrastructure. Condor believes it has made significant progress towards obtaining permits and we are in the final stages of the permitting process," stated Child.