Shares of Condor Gold (LON: CNR) (TSE: COG) jumped by approximately 20 per cent on Monday after it reported received nonbinding takeover approaches from Calibre Mining Corp (TSE: CXB) (OTCMRKTS: CXBMF) and Metals Exploration (AIM: MTL).
Metals Exploration, a UK-listed company focused on gold projects in the Philippines, is nearing a cash-and-stock deal to acquire Condor Gold. The company, which operates the Runruno gold project in the Philippines, could announce the deal as early as this week.
Condor put its flagship La India open-pit gold project up for sale in 2022. Furthermore, that same year, Condor completed a definitive feasibility study for La India, outlining plans to develop the mine in two stages. The study also identified two additional high-grade feeder pits with permits, which could be integrated into production during the mine’s early years.
The study demonstrated that La India can produce an average of 81,524 ounces of gold annually during the first six years of its 8.4-year mine life. Additionally, it would require a relatively low upfront capital investment of USD$106 million.
Calibre admits to having discussions for a potential acquisition of the asset, which aligns well with its Hub & Spoke operation. However, Calibre confirmed in a press release that it is not currently negotiating with Condor and has not made an active offer. Furthermore, unless Condor chooses to reengage in meaningful discussions, Calibre does not plan to pursue the acquisition.
Despite this, Metals Exploration has verified the approach. Metals Exploration has offered to buy Condor Gold for up to 90.1 million pounds, or USD$114.8 million, and secured support for the proposal from the mineral resources exploration and development company’s chairman.
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Exploration strategy blends resource expansion and economic feasibility
Condor Gold is a UK-based mineral exploration and development company focused on advancing its flagship La India Gold Project in Nicaragua.
The project hosts a high-grade gold resource, estimated at over 2.3 million ounces across multiple categories, with significant potential for further exploration and development. Condor’s efforts have included environmental permitting, pre-feasibility studies, and infrastructure readiness, positioning La India as a near-term production asset.
The company’s exploration strategy combines resource expansion with economic feasibility, making it a compelling target for companies seeking advanced-stage gold projects with reduced development risk.
For Metals Exploration, acquiring Condor Gold would complement its existing portfolio and expand its footprint in the gold mining sector.
Metals Exploration could leverage its operational experience to accelerate the development of La India, while benefiting from the project’s substantial gold reserves and high-grade mineralization. This acquisition also offers Metals Exploration access to a geographically diverse asset with a strong environmental and permitting foundation, potentially enhancing its production capacity and long-term growth.
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joseph@mugglehead.com
