Condor Resources Plc
("Condor" or "the Company")
Project Acquisition and Trading Update
Condor Resources Plc (AIM:ticker code "CNR") announces that, after completing detailed due diligence, it has acquired an option over two new gold projects, the Kuikuinita and Columbus projects (the "Projects"), in the north eastern quadrant of Nicaragua, Central America. The Directors believe that both Kuikuinita and Columbus hold potential, yet to be fully tested, and that the results demonstrated by previous explorers merit further investigation.
Under the terms of the Option and Farm In Agreement, signed on 20th August 2006 with a full Due Diligence completed with signing a Variation Agreement on the 26th October 2006:
. Condor has made an initial payment of US$100,000 to the Nicaraguan vendors, Chorti Holdings SA for both licences;
. Condor has a deadline of 31 March 2007 to complete initial field studies to allow a full geological assessment of the Projects' potential and to exercise its options;
. Upon the exercise of its options, Condor will make a further payment of US$100,000 per licence to Chorti Holdings SA by 31 March 2007; and
. Condor will earn an 80% interest by expending at least US$1 million on each Project in the three year period to 31 March 2010.
The Company has commenced initial confirmatory mapping and sampling programmes and will also re-sample existing drill core from the two Project areas. The initial and future considerations in respect of the options will be met from the Company's existing resources. Condor raised lb4.85m gross in a successful Placing of 40.95 million shares at 10p per share on Admission to AIM in May 2006 and a subsequent placement of 7.5 million shares at 10p per share on the 2nd June 2006.
Nigel Ferguson, CEO of Condor, commented: "Our review of the available data is well advanced and we will complete further field check studies to confirm that both the Kuikuinita and Columbus Projects have significant potential as believed. A further four months of work, in addition to the two months of due diligence work already completed, will be undertaken to ensure that the projects meet the strict selection criteria used by Condor's management.
"Initial review work has been very encouraging for both Projects and further geochemical results should be available early in 2007. We hope to be able to announce positive results for both Projects."
Condor Resources Plc