Condor Gold PLC (AIM:CNR, TSX:COG, OTC:CNDGF) said it has appointed Hannam and Partners to seek a buyer for the assets of the company. Condor recently completed a bankable feasibility study on the La India open-pit gold project in Nicaragua.
“Condor Gold has de-risked the La India gold project to a near construction-ready status, with an 18-month construction period from receipt of project financing,” said Mark Child, chief executive of Condor Gold in a statement.
“The board has reviewed the company’s options including going through a financing and construction phase as a single asset, single jurisdiction company with no existing gold production and has concluded it is in the best interests of the company and all stakeholders to sell the assets of the company to a gold producer with mine building expertise, thus ensuring a new mine at La India, a significant investment in the local area and a regeneration of the local communities,” he added.
As it stands, the plan is to develop a mine in two stages using the new SAG mill that has already been purchased. Condor owns approximately 1,000 hectares of land over the area of the mine site infrastructure and has the key permits to construct and operate the mine.
The feasibility study envisaged average annual gold production of 81,524 ounces of gold for an initial six-year period. Upfront capital costs were set at US$106min.
Two additional permitted high-grade feeder pits can be added during the early years of production, increasing early production to over 100,000 ounces per year, with a stage two expansion to 150,000 ounces.
La India comprises a large, highly prospective land package of 588 square kilometres made up of 12 contigious and adjacent concessions.
The resource stands at 1mln ounces of gold in the indicated mineral resource category and 1.2mln ounces inferred.