Metals Exploration Eyes Condor Gold, Calibre Mining Denies Interest

Metals Exploration (LSE:MTL) has confirmed its intent to explore the acquisition of Condor Gold (LSE:CNR,TSX:COG,OTC Pink:CNDGF), offering a blend of shares, cash and contingent value rights (CVRs).

Meanwhile, Calibre Mining (TSX:CXB,OTCQX:CXBMF) has clarified that it is not pursuing any deal with Condor, distancing itself from earlier reports of interest in Condor’s La India gold project.

Metals Exploration announced its proposal on Monday (December 2), saying that it values Condor’s existing share capital at approximately 67.5 million pounds (US$85.4 million).

The CVRs would give Condor shareholders access to a share of potential future revenues from additional gold resources discovered at Condor’s projects, capped at 1.6 million ounces over five years.

If fully realized, the CVRs could add 22.6 million pounds to the total consideration.

Galloway, owned by Jim Mellon, non-executive chair of Condor, has pledged to support the proposed acquisition. This support includes Galloway’s 24.7 percent stake in Condor and additional shares through warrant exercises.

Prior to Metals Exploration and Calibre’s clarifying press releases, Condor said on Sunday (December 1) that it had received non-binding offers from both Metals Exploration and Calibre.

As mentioned, Calibre has denied any active interest in acquiring Condor or its La India project.

In its own Sunday statement, the Canadian mid-tier gold producer acknowledged past discussions with Condor regarding La India, but emphasized that no current talks or offers are in place.

“At this time, unless Condor is willing to reengage in meaningful discussions, Calibre does not envision completing an acquisition,” said the company, which operates a hub-and-spoke system in Nicaragua, where La India is located.

La India has been on the market for over two years, with Condor engaging in sale discussions with various parties.

In September, Condor said it was in discussions for an asset-only sale of the project. The announcement highlighted that the sale process aimed to unlock value for shareholders by seeking buyers capable of advancing La India.

At the time, Condor emphasized the project’s potential, underpinned by a feasibility study confirming robust economics and a resource base of over 1.1 million ounces of gold.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.