Condor Signs Royalty Agreements on Lucero and Chavin Projects
Cancels Previously Announced Private Placement
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov 18, 2015) - Condor Resources Inc. - ("Condor" or the "Company") (TSX VENTURE:CN) is very pleased to announce that through its Peruvian subsidiaries, it has concluded royalty agreements on two of its wholly owned projects in Peru.
Minas Lucero del Sur S.A.C. ("Minas Lucero"), has concluded a production royalty agreement with a private Peruvian company ("Operator") on the Lucero project, and Condor Exploration Peru S.A.C. ("Condor Peru") has concluded a production royalty agreement with the Operator on the Chavin project.
Lucero is located in southern Peru, approximately 25 kms southeast of Buenaventura's Orcopampa mine. The property covers what is known as the Shila Mining District, which includes three precious metal vein mines that were mined from 1990 until 2006. Under the royalty agreement, the Operator will pay Minas Lucero a net smelter royalty of 3%, subject to an annual minimum of US$75,000, payable in advance. If the price of gold exceeds US$2,000 per ounce, the royalty increases to 4.5%, and conversely, if the price of gold is below US$1,000, the royalty will decrease to 1.5%. The first year's minimum royalty was paid on signing. The Operator is also obligated to complete a minimum of 1,000m of diamond drilling on the project within one year of obtaining the necessary permits.
Chavin is located in the Ancash Department of Peru, approximately 45 kms northwest of Barrick's Pierina mine. The property is host to epithermal polymetallic veins, and the principal vein has been traced for over 1km. The property shows evidence of previous small scale mining, including an adit of over 50m in length. Under the royalty agreement, the Operator will pay Condor Peru a net smelter royalty of 3%, subject to an annual minimum of US$25,000, payable in advance. The first year's minimum royalty was paid on signing. The Operator is also obligated to complete a minimum of 1,000m of diamond drilling on the project within one year of obtaining the necessary permits.
With the closing of these two agreements and receipt of the first year's minimum royalties of US$100,000, the Company has cancelled the private placement announced September 24, 2015.
Condor is a project generator focused exclusively on Peru, and our objective is the discovery of a major new precious metals or base metals deposit. Project acquisition and development is managed by our Lima based exploration team.
ON BEHALF OF THE BOARD
Lyle Davis, President & Chief Executive Officer
Cautionary Statement Regarding Forward-Looking Information: All statements, trend analysis and other information contained in this press release relative to markets about anticipated future events or results constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements. Forward-looking statements are based on estimates and opinions of management at the date the statements are made. The Company does not undertake any obligation to update forward-looking statements even if circumstances or management's estimates or opinions should change. Investors should not place undue reliance on forward-looking statements.
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