Calibre Mining (TSX: CXB) is refuting claims made by Condor Gold (TSX: COG) related to its possible purchase of Condor’s La India project in Nicaragua.
The commentary was based on a news release issued last night by Condor Gold, whom confirmed a press article that it had received non-binding offers for the La India project from two parties. Condor confirmed that the offers came from both Metals Exploration Plc and Calibre Mining, which follows an announcement back in September that the company was in discussions with interested parties for the sale of the property.
While Condor indicated that there is no certainty that any firm offer will be made, as per market regulations, the announcement effectively forced both Metals Exploration and Calibre to respond within 30 days on whether they would be making a firm offer.
Calibre was swift in its response to the announcement, stating that it had engaged in discussions related to the asset over the last two years, but refused to state that it had previously issued a non-binding offer. Calibre instead said that it “is not currently in discussions with Condor, nor does it have an active offer.”
Calibre then followed up the statement by stating that “unless Condor is willing to reengage in meaningful discussions, Calibre does not envision completing an acquisition.”
Condor Gold’s La India project consists of 588 square kilometres of concessions, covering 98% of the historic La India gold mining district. The project has seen historical production of 576,000 ounces of gold at 13.4 g/t. Today the project is said to be construction ready, with a feasibility study outlining a net present value (5% discount) of $320 million at $2,400 gold, based on an operation that produces 82,000 ounces of gold per year for six years.
Calibre Mining last traded at $2.46 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
