VANCOUVER, June 20, 2011 /CNW/ - El Condor Minerals Inc. ("El Condor" or
the "Company") is pleased to announce that it has signed a definitive
Property Purchase Agreement (the "Purchase Agreement") with Quetzal Energy Ltd. (TSXV: QEI) in respect of the previously
announced (May 11, 2011) acquisition (the "Acquisition") of 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 Purchase Agreement, El Condor will purchase the
Horden Lake Property for a price of $5 million, comprised of $3 million
in cash, of which $100,000 has been paid as a non-refundable deposit,
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 will be undertaken by El Condor for proceeds of
not less than $3 million, and which will complete concurrently with, or
in conjunction with, the Acquisition.
El Condor has completed its due diligence of the Horden Lake Property
and has engaged an independent geological consulting firm to prepare a
National Instrument 43-101-compliant technical report on the
Property. Completion of the Acquisition continues to be conditional on
regulatory approval. El Condor will complete the Private Placement
Funding, the terms of which are currently being negotiated, in
conjunction with the Acquisition.
Leigh Freeman, El Condor President and CEO, stated "We are excited about
this new important asset. Horden Lake is a Canadian legacy deposit,
having been discovered in the 1960's as a result of some of the
earliest airborne electromagnetic surveys by a joint venture between
Inco and Noranda. A combination of increased metal prices and improved
infrastructure make this NI 43-101 qualified resource relevant today.
And, we feel strongly that the district will continue to yield
The Horden Lake Property is a copper-nickel property with platinum group
and precious metal credits located within a 40-kilometer long layered
ultra-mafic rock sequence. The total land package is comprised of 106
mineral claims and is in excess of 52 square kilometers.
Working Capital Private Placement
El Condor is also pleased to announce that it has completed the working
capital private placement financing, previously announced May 20,
2011. The size of the offering was increased from 6,666,667 units to
7,350,036 units, for gross proceeds of $1,102,505. Each unit is
comprised of one common share and one-half of one share purchase
warrant. Each whole warrant entitles the holder to acquire an
additional common share at a price of $0.25 per share for a period of
The proceeds of the financing will be used for general working capital
and corporate purposes. Finder's fees of 8% cash totaling $61,800 and
412,000 warrants to purchase common shares at a price of $0.25 per
share for a period of one year were paid on portions of the private
placement. All securities issued under the private placement are
subject to a four month and one day hold period that expires October
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:
For information, please contact the Company at (604) 689-8336 or by e-mail at firstname.lastname@example.org