GBH Law Helps Condor Gold to Raise £3.3 Million For its La India Project
27th July 2023
In December 2022, Condor Gold successfully raised £2.3 million through an open offer and placing, and an additional £1 million from Galloway Limited via an unsecured convertible loan note and issue of warrants.
Shareholder approval was given for the sub-division of the company’s existing ordinary shares and the issue of new ordinary shares under the open offer and private placing, which was launched in December 2022. Qualifying shareholders with existing ordinary shares were given the opportunity to subscribe for new ordinary shares. Excess entitlements not taken up by qualifying shareholders under the open offer were placed with non-qualifying shareholders at the issue price.
In addition, £1 million was also raised from Galloway Limited, the investment vehicle of Jim Mellon, Condor Gold’s chairman, via the issue of unsecured convertible loan notes.
Commenting on the successful fundraise, Jim Mellon said: “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. Initial production of the company’s La India Project 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.”
Kate Doody, Solicitor and Director at GBH Law, and Company Secretary to Condor Gold advised on the fundraise. She stated “The fund raise was delayed due to the imposition of sanctions by the US on certain aspects of mining in Nicaragua, which created investor uncertainty. With Christmas holidays looming, the Company had to get the deal over the line as quickly as possible. The sub-division of shares (which was required as the market price had fallen below the nominal value of the shares) required shareholder approval, adding to the timeline significantly and requiring careful planning. We worked hard to get the circular drafted over a weekend and liaised with the registrars, printers, Company’s brokers, Canadian lawyers, and the Toronto Stock Exchange (TSX) to close the placing and get funds to the Company on 23 December. It was particularly challenging explaining the sub-division of shares to the TSX and Canadian registrars as this was not something they had ever come across previously.”
With the funds raised from the open offer and placing, Condor Gold PLC has a sufficient financial cushion to see it through a sale of the assets at the La India Project.
For more information about the corporate team at GBH Law, or to discuss any corporate or other business legal advice you may require, please contact Kate Doody.