Condor Gold plc
(‘Condor’ or ‘the Company’)
Settlement of NSR dispute with B2Gold and Royal Gold & Purchase of Land Surface Rights
Condor Gold (AIM: CNR), the AIM-listed gold exploration company, is pleased to announce it has reached terms of a settlement with B2Gold Corporation (“B2Gold”) (TSX-BTO) and Royal Gold, Inc. (“Royal Gold”) (Nasdaq-RGLD) over a disputed Net Smelter Return Royalty (“NSR”) over part of Condor’s flagship La India Project in Nicaragua, which hosts a high grade NI 43-101 compliant mineral resource estimate of 18.08 Mtonnes at 4.0 g/t for 2.31 Moz gold. Condor is also acquiring from B2Gold approximately 3,508 hectares of land surface rights which cover the area of the estimated mineral resource and reserves and the proposed mine site infrastructure.
Highlights:
- Condor reaches terms of a settlement on 3% NSR with B2Gold and Royal Gold.
- The settlement clears the way for the Project to advance towards the construction of a 1Mtpa processing plant with capacity to produce 100,000 oz gold p.a. from a single open pit.
- Purchase from B2Gold of 3,508 hectares of land surface rights covering the mine site infrastructure and the area of the mineral resource and reserve.
- Purchase of land surface rights from B2Gold removes an obstacle and allows the project to progress.
- Settlement of NSR dispute and purchase of land surface rights de-risks the Project.
Mark Child, CEO comments:
“I am pleased to have negotiated the terms of the settlement over a 3% NSR on part of Condor’s La India Project. It ends four years of litigation in the Canadian and Nicaragua courts with B2Gold and Royal Gold. It clears the way to progress Mina La India to construction by providing clarity to potential funding partners over a protracted NSR dispute. I am equally pleased to have acquired surface rights in respect of 3,508 hectares of land from B2Gold, which covers the area of the mine site infrastructure required for the base case 1Mtpa processing plant with capacity to produce 100,000 oz gold p.a. from a single open pit. The purchase of the land surface rights removes an obstacle to construction, not least because B2Gold undertook litigation against Condor in Nicaragua in relation to these rights. The purchase of land surface rights will facilitate negotiations with local land owners and allows the project to progress forming part of Condor’s strategy of de-risking the Project and achieving a clear path to production”.
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