The company’s board reviewed options, including a financing and construction phase as a single asset, a single-jurisdiction company with no existing gold production, and appointed Hannam and Partners to seek a potential buyer
Condor Gold plans to sell La India project. (Credit: Rolf Dobberstein from Pixabay)
UK-based gold exploration and development company Condor Gold has announced its plans to sell its La India open-pit gold project in Nicaragua, following a feasibility study (FS).
The company’s board reviewed options, including a financing and construction phase as a single-asset, single-jurisdiction company with no existing gold production.
Condor Gold has appointed Hannam and Partners, a London-based independent investment bank, to seek a potential buyer, a gold producer with mine-building expertise.
Last month, the company conducted a definitive feasibility study for the La India mine. The study suggested a plan to build the mine in two phases.
The sale is expected to enable a new mine at La India, a significant investment in the local area and a regeneration of the local communities, said the company.
Condor Gold chief executive Mark Child said: “Condor Gold has de-risked the La India Gold Project to a near construction-ready status with an 18-month construction period from receipt of project financing.
“The company’s strategy has been successfully executed, de-risking the assets so that a mine can be developed in 2 stages using the new SAG Mill that has already been purchased.
“The company owns approximately 1,000 hectares of land over the area of the mine site infrastructure and has the key permits to construct and operate the mine.”
La India project is the company’s principal asset, comprising a large, highly prospective land package of 588km2, hosting 12 contigious and adjacent concessions.
Other assets include around 1,000ha of land, acquired for the mine site infrastructure for around $4.2m and purchased a new SAG Mill package for $6.5m.
The FS confirmed that La India has the capacity to produce an average of 81,524 ounces of gold per annum for the initial six years of its 8.4 years mine-life.
It suggests a low initial-capital requirement of $105.5m and low average Life of Mine All-in Sustaining Cash costs (AISC) of $1,039 per oz of gold, said the company.
Child added: “The delivery of a robust and economically attractive Feasibility Study on the single La India open pit demonstrates an average of 81,524oz gold per annum for the initial six years for a relatively low total upfront capital cost of $106m.
“Two additional permitted high-grade feeder pits can be added during the early years of production thus increasing early production to over 100,000oz gold p.a. with a stage 2 expansion to 150,000oz gold p.a. as detailed in the October 2021 PEA.”