Condor Gold PLC (AIM:CNR, TSX:COG, OTC:CNDGF) confirmed that it has raised gross proceeds of approximately £2.3mln through the issue of a total of 15,161,373 new ordinary shares under the open offer and placing launched on 5 December 2022.
Under the open offer, qualifying Condor Gold shareholders were able to subscribe for 1 new share in the company for every 6 existing ordinary shares held at the record date at a price of 15p each.
Part of the excess entitlements not taken up by qualifying shareholders under the open offer have been placed by the company and its broker, SP Angel, with non-qualifying shareholders at the issue price.
The open offer has now closed for acceptances and valid applications, including under the excess application facility, were received in respect of a total of 12,156,374 open offer shares, while 3,004,999 new ordinary shares have been placed with existing shareholders.
In addition, the £1 million raised from Galloway Limited – the investment vehicle of Jim Mellon, Condor Gold’s chairman – via an unsecured convertible loan note, as announced on 28 November 2022, has been converted into 6,666,666 new ordinary shares at the open offer price of 15p per share and an additional 74,922 new ordinary shares have been issued to Galloway in satisfaction of accrued interest in accordance with the terms of the convertible loan note instrument.
Accordingly, the Condor Gold chairman is now the beneficial owner of 36,435,814 ordinary shares in the company representing 20.18% of the enlarged issued share capital.
In a statement, Mellon commented: “I am delighted with the results of this Fundraise, which provided pre-emptive rights to all shareholders and raised gross proceeds of approximately £3.3 million, being £1 million from Galloway, my investment vehicle and approximately £2.3 million from the open offer and placing.
“The company’s La India Project is almost construction ready, with the key permits to construct and operate a mine, a bankable feasibility study completed, a SAG Mill and surface rights purchased. Initial production is targeted at 100,000 oz gold p.a. with an expansion to 150,000 oz gold p.a. The strategy recently announced is for the company to sell the assets. The fundraise allows the company to enter a sale phase sufficiently funded.”
The issue of new ordinary shares under the open offer and placing was conditional upon shareholder approval of a sub-division of shares, which was given at the EGM held on Wednesday. Accordingly, each of the company’s existing ordinary shares of £0.20 will now be subdivided into one new ordinary share of £0.001 and one deferred share of £0.199.