TSXV Symbol: LCO
VANCOUVER, May 11 /CNW/ - El Condor Minerals Inc ("El Condor" or the
"Company") is pleased to announce that it has entered into a binding
Letter Agreement with Quetzal Energy Ltd. (TSXV: QEI) to acquire (the "Acquisition") Quetzal's 95% interest in the Horden Lake Property, a copper-nickel
property with precious metal credits located in the Province of Quebec,
approximately 200 kilometres north of Mattagami, Quebec.
Under the terms of the Letter Agreement, El Condor will purchase
Quetzal's 95% interest in the Horden Lake Property for a purchase price
of $5 million, comprised of $3 million in cash, including a $100,000
deposit to be paid on or before May 21, 2011, and $2 million in common
shares of El Condor. The common shares will be issued at a deemed
price equal to the lesser of $0.20 per share and the price per share of
a private placement (the "Private Placement Funding") of common shares that is undertaken by El Condor for proceeds of not
less than $3 million, which will complete concurrently with, or in
conjunction with, the Acquisition.
Completion of the Acquisition will be conditional on, amongst other
things, regulatory approval, the parties having entered into a
Definitive Agreement for the Acquisition and El Condor's completion, to
its satisfaction, of its due diligence review of the Horden Lake
Property on or before June 10, 2011. El Condor will complete the
Private Placement Funding, the terms of which are currently being
negotiated, in conjunction with the Acquisition.
Leigh Freeman, President and Chief Executive Officer of El Condor, said
"The Horden Lake project was initially discovered in the 1960's, and is
an ideal foundation upon which to build El Condor, with outstanding
potential for additional discoveries located in one of the premier
geological and geopolitical locales in the world."
About The Horden Lake Property
The Horden Lake project is a copper/nickel property with platinum group
and precious metal credits located within a 40 kilometer long, 1 to 1.5
kilometer wide layered ultra-mafic rock sequence. The total land
package is in excess of 52 square kilometers. The recently completed
road and power line for the Le Grande hydroelectric dam transects the
district, making it readily accessible.
Predecessor exploration work on the Horden Lake property and district
includes drilling of 18,136 meters in 73 holes between January 26, 2008
and March 19, 2009, and a Fugro HeliGEOTEM II airborne geophysical
survey that included an orientation/calibration survey over the Horden
Lake property and 592 line kilometers of data collected over the
Northeastern Claim group. The former documented a strong
electromagnetic and magnetic response of the known mineralization and
the latter identified a number of similar and very promising targets in
the Northeastern Claim group.
About El Condor Minerals Inc.
El Condor Minerals Inc. is a minerals exploration company focused on the
discovery of large precious- and base-metal mineral systems in stable
political jurisdictions. Additional information on El Condor, its
properties and exploration activities is available at the Company's
ON BEHALF OF THE BOARD OF DIRECTORS
"Leigh W. Freeman"
President & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE El Condor Minerals Inc.
For further information:
please contact the Company at (604) 689-8336 or email@example.com.