- Condor Gold has put itself up for sale as part of a formal strategic review of the company's business and assets.

Condor said the board has conducted an internal review of strategic options going forward against the backdrop of a gold price that has corrected approximately 40% from its all time high 3 years ago and the lack of appetite for equity financing in the junior gold exploration sector.

Condor says one of the options being considered would be a possible offer for the company. Another option is for a joint venture or sale of one or more of the company's assets, including the independent mineral resource estimate in El Salvador of 13.1M tonnes at 2.6g/t containing 1.1M oz gold equivalent.

The board has concluded that the equity required for the construction of a mine at La India Project, given the upfront capital cost of between US$110m and US$169m estimated in the PFS and PEAs would prove significantly dilutive to existing shareholders. Furthermore, there is no guarantee that either equity or debt financing for the construction of the mine and associated infrastructure can be secured on satisfactory terms.

Condor says that in the last 5 years it has successfully proved an independent mineral resource at its flagship La India project in Nicaragua of 18.1 million tonnes at 4.0g/t containing 2.32M oz gold, which includes an open pit mineral reserve of 6.9M tonnes at 3.0g/t gold containing 675,000 oz gold. An NI 43-101 technical report detailing a pre-feasibility study and two preliminary economic assessments were posted on Condor's website on 21 December.

Story provided by