Condor Gold PLC on Tuesday said it has raised £3.3 million, which will be used to complete a feasibility study at the La India project.
Condor Gold said it has raised around £3.3 million before expenses from a placing of 11.6 million shares at a price of 28p each.
Shares in the mine developer in Nicaragua were down 12% to 26.90 pence each in London on Tuesday midday.
The new shares represent approximately 7.9% of the company’s share capital before the placing.
The placing includes a directors’ subscription for a total of 1.8 million shares at the placing price. This took place in London on Tuesday.
Taking the most of these, Non-Executive Director Jim Mellon bought 1.8 million shares through Galloway Ltd, worth £500,000. Mellon now is interested in 29.7 million shares, a 19% stake.
Condor Gold said the placing was undertaken by the company and its broker, SP Angel Corporate Finance LLP, with institutional and other investors.
‘The placement proceeds will be primarily used to complete a feasibility study at the La India Project, increasing the confidence of the project,’ said Chair & Chief Executive Mark Child, adding: ‘The feasibility study will be a key document as the company seeks to secure project financing ahead of project construction.’
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