Quetzal Energy has signed a binding letter agreement with El Condor Minerals to sell its 95% interest in its non-core Horden Lake property in the Canadian province of Quebec.

Horden Lake is a copper-nickel property with precious metal credits and El Condor will buy the 95% interest for $5m.

The purchase price is comprised of $3m in cash and $2m in common shares of El Condor.

Completion of the transaction is conditional on, amongst other things, regulatory approval, the parties having entered into a definitive agreement for the interst sale and El Condor’s completion of its due diligence review of the Horden Lake property on or before 10 June 2011.

Quetzal is an independent energy company engaged in exploration, development and production activities in Guatemala and Colombia.