REG - Condor Gold PLC - Appointment of Denham Eke as a Non-Exec Director

Condor GoldAnnouncement

22/12/2022 10:15

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RNS Number : 6198K  Condor Gold PLC  22 December 2022

 

 

   Condor Gold plc

   7/8 Innovation Place

   Douglas Drive

   Godalming

   Surrey

   GU7 1JX

   Tel: +44 (0) 207 493 2784

22 December 2022

 

 

Condor Gold Plc

("Condor" or the "Company")

 

Appointment of Denham Eke as a Non-Executive Director

Condor Gold Plc (AIM: CNR; TSX: COG) announces that further to its
announcement of 28 November 2022 the Company has today appointed Denham Eke as
a Non-Executive Director. Mr Eke has been appointed as a condition of the
subscription by Galloway Limited for the £1m Unsecured Convertible Loan Notes
announced on 28 November, which have now converted into New Ordinary Shares at
15 pence per share (see RNS dated 21 December 2022). Denham is the sole
director of Galloway Limited, an 18.7% shareholder in the Company which is
wholly owned by Burnbrae Group Limited which is, in turn, is wholly owned by
Jim Mellon, Condor's Chairman

 

Denham Eke began his career in stockbroking before moving into corporate
planning for a major UK insurance broker. He is a director of many years'
standing of both public and private companies involved in the mining, leisure,
manufacturing and financial services sectors. Denham is the Managing Director
of Burnbrae Group Limited, Galloway Limited and also Executive Vice Chairman
of AIM traded Manx Financial Group Plc (AIM:MFX), Finance Director of
Agronomics Limited (AIM: ANIC) and Bradda Head Lithium Ltd (AIM:BHL) and
Chairman of Webis Holdings Plc (AIM: WEB).

 

Other than as disclosed below, there are no further disclosures to be made in
accordance with AIM Rule 17 and paragraph (g) of Schedule Two of the AIM Rules
for Companies:

 

Denham Hervey Newall Eke (aged 71)

 

 Current                                       Past
 Agronomics Limited                            Oilbarrel.com Limited

 Albany Management Limited                     Good Dog Food Limited

 Albany SIAG Development GbR                   West African Minerals Corporation

 Albany SIAG Gerwerbe 1 GbR                    Sharecrazy.com Limited

 Albany SIAG Gerwerbe 11 GbR                   Speymill plc

 Albany SIAG Gerwerbe 111 GbR                  Speymill Property Group (UK) Limited

 Albany SIAG Wohnen 1 GbR                      Spreadbet Magazine Limited

 Albany SIAG Wohnen 11 GbR                     Beckley Psytech Limited

 All Star Leisure (Group) Limited              Blue Star Leasing Limited

 Arundel Services Limited                      Manx Incahoot Limited

 B.E. Global Services Limited                  Manx Collections Limited

 betInternet.com (IOM) Limited

 betInternet.com NV

 Big Group plc

 BigSave Limited

 Billing Service Group Limited

 Blue Star Business Solutions Limited

 BMIP Limited

 Bradburn Limited

 Bradda Head Holdings Limited

 Burnbrae Belgium Limited

 Burnbrae Events Limited

 Burnbrae Group Limited

 Burnbrae Limited

 Burnbrae Media Holdings Limited

 Burnbrae Media Investments Limited

 Burnbrae Media Services Limited

 Burnbrae Spain SL

 Burnbrae Style Limited

 Burrow Head Limited

 Calabrese Holdings Limited

 Chester House Property Limited

 Clean Air Capital Limited

 Clean Air Capital Services Limited

 Clean Air Services Limited

 Compedica Limited

 Conister Bank Limited

 Conister Finance & Leasing Ltd

 Dundrennan Limited

 ECF Asset Finance Ltd

 Edgewater Associates Limited

 European Collateral Finance Limited

 European Corporate Finance Limited

 European Leasing Limited

 European Wagering Services Limited

 Executive Club (IoM) Limited

 Galloway Limited

 Genseq Limited

 Horsfield Limited

 IC Technology (UK) Limited

 Indigo Securities Limited

 Juvenescence AI Limited

 Juvenescence Limited

 Juvenescence UK Limited

 Juvent Holdings LimitedKG Antell

 (SIAG 16) KG

 Life Science Developments Ltd

 Mann Bioinvest (BVI) Limited

 Mann Bioinvest Limited

 Mann Pathfinder IC

 Manx Financial Group plc

 Manx Financial Limited

 Manx Ventures Limited

 MFX Limited

 Master Investor Limited

 Mediqventures Limited

 Navrona Investments Limited

 Podenco Distribution Limited

 Podenco Evissa Distribution S,L,

 Podenco Global Limited

 SalvaRX Group PLC

 SCI Burnbrae Paris

 Scotsdale Properties Limited

 Shellbay Investments Limited

 Sleepwell Aviation Limited

 Sleepwell Construction Management

 Limited

 Sleepwell Hotels (UK) Limited (Isle of

 Man)

 Sleepwell Hotels (UK) Limited (UK)

 Sleepwell Hotels Limited

 Softline Distribution Limited

 Softline Limited

 Softline UK Limited

 Stonehaven Properties Limited

 Technical Facilities & Services Limited

 Teviot Company Limited

 Transbank Card Services Limited

 Transbank Limited

 TransSend Card Services Limited

 TransSend Holdings Limited

 TransSend Payments Limited

 Troon Properties Limited

 Watch&Wager.com Limited

 Watch&Wager.com LLC

 Webis Holdings plc

 Wyatt Limited

 

 

1.   On 3 September 2015, Speymill plc, a company of which Denham Eke was a
director of at the time, entered into a voluntary liquidation and was
subsequently dissolved on 6 July 2017. Mr Eke was also a director of
subsidiary company Speymill Contracts Limited within one year of it entering
into administration on 16 December 2012 and a director of Speymill Property
Group (UK) Limited which entered into voluntary liquidation on 25 January
2016. At that time, the combined creditors of the Speymill Group were
approximately £4.3 million.

 

2.   On 29 January 2014, Rivington Street Holdings plc, a company of which
Denham Eke was a director at the time, entered into a voluntary liquidation.
The creditors were owed approximately £4 million.

 

3.   Mr Eke is a non-executive director and shareholder representative on
the board of All Star Leisure (Group) Limited. All Star Leisure (Group)
Limited appointed Administrators on 17 September 2019. No estimate of a
creditor shortfall is currently available and the administration remains
ongoing.

 

4.   Denham Eke was appointed a director of Roldec Systems plc on 10 April
1995. Roldec Systems pic was declared insolvent and entered creditor's
voluntary liquidation on 31 March 1999 with a deficit to creditors. Roldec
Systems pic was dissolved on 17 April 2003.

 

 

 

 

- Ends -

 

For further information please visit www.condorgold (http://www.condorgold)
.com or contact:

 Condor Gold plc                        Mark Child, CEO

                                        +44 (0) 20 7493 2784
 Beaumont Cornish Limited                Roland Cornish and James Biddle

                                        +44 (0) 20 7628 3396
 SP Angel Corporate Finance LLP         Ewan Leggat

+44 (0) 20 3470 0470
 H&P Advisory Limited                   Andrew Chubb and Nilesh Patel

                                        +44 207 907 8500
 Adelaide Capital (Investor Relations)  Deborah Honig

                                        +1-647-203-8793

 

 

 

 

About Condor Gold plc:

Condor Gold plc was admitted to AIM in May 2006 and dual listed on the TSX in
January 2018. The Company is a gold exploration and development company with a
focus on Nicaragua.

 

The Company's principal asset is La India Project, Nicaragua, which comprises
of a large, highly prospective land package of 588 sq km comprising of 12
contiguous and adjacent concessions. The Company has filed a feasibility study
technical report dated 25 October 2022 and entitled "Condor Gold Technical
Report on the La India Gold Project, Nicaragua, 2022" (the "2022 FS") which is
available on the Company's SEDAR profile at www.sedar.com
(http://www.sedar.com) and was prepared in accordance with the requirements of
NI 43-101.  The 2022 FS indicated that La India Project hosts a high grade
Mineral Resource Estimate ("MRE") of 9,672 kt at 3.5g/t gold for 1,088,000 oz
gold in the indicated mineral resource category and 8,642 kt at 4.3 g/t gold
for 1,190,000 oz gold in the inferred mineral resource category. The open pit
MRE is 8,693 kt at 3.2 g/t gold for 893,000 oz gold in the indicated mineral
resource category and 3,026 kt at 3.0 g/t gold for 291,000 oz gold in the
inferred mineral resource category. Total underground MRE is 979 kt at 6.2 g/t
gold for 194,000 oz gold in the indicated mineral resource category and 5,615
kt at 5.0 g/t gold for 898,000 oz gold in the inferred mineral resource
category.

 

 

The 2022 FS replaces the previously reported Preliminary Economic Assessment
("PEA") as presented in the Technical Report filed on SEDAR in October 2021 as
the current technical report for the La India project.

 

The 2021 PEA considered the expanded Project inclusive of the exploitation of
the Mineral Resources associated to the La India, Mestiza, America and Central
Breccia deposits. The strategic study covers two scenarios: Scenario A, in
which the mining is undertaken from four open pits, termed La India, America,
Mestiza and Central Breccia Zone ("CBZ"), which targets a plant feed rate of
1.225 million tonnes per annum ("Mtpa"); and Scenario B, where the mining is
extended to include three underground operations at La India, America and
Mestiza, in which the processing rate is increased to 1.4 Mtpa. The 2021 PEA
Scenario B presented a post-tax, post upfront capital expenditure NPV of
US$418 million, with an IRR of 54% and 12 month pay-back period, assuming a
US$1,700 per oz gold price, with average annual production of 150,000 oz gold
per annum for the initial 9 years of gold production. The open pit mine
schedules were optimised from designed pits, bringing higher grade gold
forward resulting in average annual production of 157,000 oz gold in the first
2 years from open pit material and underground mining funded out of cashflow.
The 2021 PEA Scenario A presented a post-tax, post upfront capital expenditure
NPV of US$302 million, with an IRR of 58% and 12 month pay-back period,
assuming a US$1,700 per oz gold price, with average annual production of
approximately 120,000 oz gold per annum for the initial 6 years of gold
production. The Mineral Resource estimate and associated Preliminary Economic
Assessment contained in the 2021 PEA are considered a historical estimate
within the meaning of NI 43-101, a qualified person has not done sufficient
work to classify such historical estimate as current, and the Company is not
treating the historical Mineral Resource estimate and associated studies as
current, and the reader is cautioned not to rely upon this data as such.
Mineral Resources that are not Mineral Reserves do not have demonstrated
economic viability. The Company believes that the historical Mineral Resource
estimate and Preliminary Economic assessment is relevant to the continuing
development of the La India Project.

 

In August 2018, the Company announced that the Ministry of the Environment in
Nicaragua had granted the Environmental Permit ("EP") for the development,
construction and operation of a processing plant with capacity to process up
to 2,800 tonnes per day at its wholly-owned La India gold Project ("La India
Project"). The EP is considered the master permit for mining operations in
Nicaragua. Condor has purchased a new SAG Mill, which has mainly arrived in
Nicaragua. Site clearance and preparation is at an advanced stage.

 

Environmental Permits were granted in April and May 2020 for the Mestiza and
America open pits respectively, both located close to La India. The Mestiza
open pit hosts 92 Kt at a grade of 12.1 g/t gold (36,000 oz contained gold) in
the Indicated Mineral Resource category and 341 Kt at a grade of 7.7 g/t gold
(85,000 oz contained gold) in the Inferred Mineral Resource category. The
America open pit hosts 114 Kt at a grade of 8.1 g/t gold (30,000 oz) in the
Indicated Mineral Resource category and 677 Kt at a grade of 3.1 g/t gold
(67,000 oz) in the Inferred Mineral Resource category. Following the
permitting of the Mestiza and America open pits, together with the La India
open pit Condor has 1.12 M oz gold open pit Mineral Resources permitted for
extraction.

 

Disclaimer

 

Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on the Company's website (or any other website) is
incorporated into, or forms part of, this announcement.

 

TSX Matters

 

For the purposes of TSX approvals in connection with the Open Offer, the
Company is relying on the exemption set forth in Section 602.1 of the TSX
Company Manual, which provides that the TSX will not apply its standards to
certain transactions involving "eligible interlisted issuers" such as Condor
whose shares are also listed on a recognized exchange such as AIM.

 

Qualified Persons

 

The technical and scientific information in this press release has been
reviewed, verified and approved by Andrew Cheatle, P.Geo., a director of
Condor Gold plc, and Gerald D. Crawford, P.E., the Chief Technical Officer of
Condor Gold plc, each of whom is a "qualified person" as defined by NI 43-101.

 

 

Important Notice(s)

Forward Looking Statements

 

All statements in this press release, other than statements of historical
fact, are 'forward-looking information' with respect to the Company within the
meaning of applicable securities laws, including statements with respect to
the open offer and the potential conversion of the Convertible Loan Notes; the
subdivision of the Company's existing ordinary shares and the meeting of
shareholders to approve such subdivision; future development and production
plans, projected capital and operating costs, mine life and production rates,
metal or mineral recovery estimates, Mineral Resource, Mineral Reserve
estimates at the La India Project, the potential to convert Mineral Resources
into Mineral Reserves; and the Company's strategic plans and ongoing sales
process. Forward-looking information is often, but not always, identified by
the use of words such as: "seek", "anticipate", "plan", "continue",
"strategies", "estimate", "expect", "project", "predict", "potential",
"targeting", "intends", "believe", "potential", "could", "might", "will" and
similar expressions. Forward-looking information is not a guarantee of future
performance and is based upon a number of estimates and assumptions of
management at the date the statements are made including, among others,
assumptions regarding: future commodity prices and royalty regimes;
availability of skilled labour; timing and amount of capital expenditures;
future currency exchange and interest rates; the impact of increasing
competition; general conditions in economic and financial markets;
availability of drilling and related equipment; effects of regulation by
governmental agencies; the receipt of required permits; royalty rates; future
tax rates; future operating costs; availability of future sources of funding;
ability to obtain financing and assumptions underlying estimates related to
adjusted funds from operations. Many assumptions are based on factors and
events that are not within the control of the Company and there is no
assurance they will prove to be correct.

 

Such forward-looking information involves known and unknown risks, which may
cause the actual results to be materially different from any future results
expressed or implied by such forward-looking information, including, risks
related to: mineral exploration, development and operating risks; estimation
of mineralisation and resources; environmental, health and safety regulations
of the resource industry; competitive conditions; operational risks; liquidity
and financing risks; funding risk; exploration costs; uninsurable risks;
conflicts of interest; risks of operating in Nicaragua; government policy
changes; ownership risks; permitting and licencing risks; artisanal miners and
community relations; difficulty in enforcement of judgments; market
conditions; stress in the global economy; current global financial condition;
exchange rate and currency risks; commodity prices; reliance on key personnel;
dilution risk; payment of dividends; as well as those factors discussed under
the heading "Risk Factors" in the Company's annual information form for the
fiscal year ended December 31, 2021 dated March 29, 2022 and available under
the Company's SEDAR profile at www.sedar.com (http://www.sedar.com) .

 

Although the Company has attempted to identify important factors that could
cause actual actions, events or results to differ materially from those
described in forward-looking information, there may be other factors that
cause actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that such information will prove to be
accurate as actual results and future events could differ materially from
those anticipated in such statements. The Company disclaims any intention or
obligation to update or revise any forward-looking information, whether as a
result of new information, future events or otherwise unless required by law.

 

Beaumont Cornish Limited, which is authorised and regulated in the United
Kingdom by the FCA, is acting as Nominated Adviser exclusively for the Company
and no one else in connection with the contents of this Announcement and will
not regard any other person (whether or not a recipient of this Announcement)
as its client in relation to the contents of this Announcement nor will it be
responsible to anyone other than the Company for providing the protections
afforded to its clients or for providing advice in relation to the contents of
this Announcement. Apart from the responsibilities and liabilities, if any,
which may be imposed on Beaumont Cornish by the Financial Services and Markets
Act 2000, as amended or the regulatory regime established thereunder, Beaumont
Cornish accepts no responsibility whatsoever, and makes no representation or
warranty, express or implied, as to the contents of this Announcement
including its accuracy, completeness or verification or for any other
statement made or purported to be made by it, or on behalf of it, the Company
or any other person, in connection with the Company and the contents of this
Announcement, whether as to the past or the future. Beaumont Cornish
accordingly disclaims all and any liability whatsoever, whether arising in
tort, contract or otherwise (save as referred to above), which it might
otherwise have in respect of the contents of this Announcement or any such
statement. The responsibilities of Beaumont Cornish as the Company's Nominated
Adviser under the AIM Rules for Companies and the AIM Rules for Nominated
Advisers are owed solely to the London Stock Exchange and are not owed to the
Company or to any director or shareholder of the Company or any other person,
in respect of its decision to acquire shares in the capital of the Company in
reliance on any part of this Announcement, or otherwise.

 

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