Condor Gold shares surge on takeover approaches

Condor Gold (LON: CNR) (TSX: COG) shares surged on Monday after the company announced it had received nonbinding takeover approaches from Calibre Mining (TSX: CXB) and Metals Exploration (AIM: MTL).

Condor’s shares had risen 23% by noon in Toronto, giving the company a market capitalization of C$103 million ($73.2 million).

In response to Condor’s announcement, Calibre stated that it had engaged in discussions regarding the potential acquisition of the La India gold asset in Nicaragua. However, the company clarified that it is not currently in discussions with Condor and has not made an active offer.

“At this time, unless Condor is willing to re-engage in meaningful discussions, Calibre does not envision completing an acquisition,” the Vancouver-based miner said in a press release.

According to Sky News, the UK-listed Metals Exploration is now close to agreeing on a cash-and-stock deal to acquire Condor. The company, which owns the Runruno gold project in the Philippines, could announce the deal as soon as this week, the report said.

Condor decided to put its flagship La India open-pit gold project up for sale in 2022. In the same year, Condor completed a definitive feasibility study for La India, which confirmed plans to develop the mine in two stages. The study also identified two additional permitted high-grade feeder pits that could be added during the early years of production.

The study further demonstrated that La India has the capacity to produce an average of 81,524 oz. of gold annually for the first six years of its 8.4-year mine life, with a relatively low upfront capital cost of $106 million.