Condor to sell Potrerillos concession for $0.6 million

LONDON: Condor Gold’s its wholly-owned subsidiary in Nicaragua, Condor S.A., is selling the non-core Potrerillos exploration and exploitation concession to Nicoz Resources S.A., a wholly-owned subsidiary of Mako Mining Corp. for a gross cash consideration of US$ 600,000.

The Potrerillos Concession comprises 12 square kilometres of sub surface mineral rights and is located in Nuevo Segovia in the north of Nicaragua, adjacent to and along strike from Mako’s San Albino gold project and which includes the former San Albino mine.

The Potrerillos Concession was explored by Condor between 2007 and 2009, with a number of channel samples taken on trenches and former mine adits.

The Company’s on-going focus is on the La India Project, which has an Environmental Permit for the development, construction and operation of a processing plant with capacity to process up to 2,800 tonnes per day with capacity to produce approximately 100,000 oz gold per annum from an open pit mineral reserve of 6.9 Mt at 3.0 g/t gold for 675,000 oz gold. La India Project contains a Mineral Resource of 9,850Kt at 3.6 g/t gold for 1,140Koz gold in the Indicated category and 8,479Kt at 4.3g/t gold for 1,179Koz gold in the Inferred category. The net sale proceeds will be used for working capital purposes on La India Project.

Condor S.A. has signed an irrevocable undertaking that, subject to the approval of the Nicaraguan Ministry of Mines and Energy by end-May 2020, it shall transfer to Nicoz S.A. the Potrerillos concession.

Within five days of the Transfer being approved by MEM, taxes amounting of up to $90,000 shall become due to the fiscal authorities in Nicaragua, being 15% of the agreed consideration value of US$600,000 and which the Parties have agreed to bear equally.

To this extent US$600,000 in cash has been paid by Nicoz S.A. to Condor S.A. and US$45,000 has been placed by each of the Parties into an escrow account with a third party agent, to be released and paid out upon approval of the Transfer.

The net consideration to Condor S.A. from the sale of the Potrerillos Concession after deduction of taxes is approximately US$555,000.

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