VANCOUVER, BC / ACCESSWIRE / April 24, 2019 / Condor Resources Inc. - ("Condor" or the "Company") (TSXV: CN) is pleased to announce that the agreement announced March 19th regarding the sale of a 1% NSR on Soledad to Chakana Copper Corp. (TSXV: PERU) ("Chakana") has closed. The agreement also includes amendments to the NSR terms of the Assignment and Option Agreement of April 2017, while all other terms, including the remaining cash payments of US$5.225 million, are unchanged. The Assignment and Option Agreement grants Chakana the right to acquire a 100% interest in Condor's Soledad concessions in Peru.
Condor received US$275,000 cash and 900,000 Chakana shares on closing; Condor now owns about 1.5% of Chakana's issued and outstanding shares.
Per the March 19, 2019 agreement, Chakana has been granted a 1% NSR on Condor's Soledad concessions. In the event Chakana does not exercise their option to acquire the Soledad concessions, Chakana will retain the 1% NSR royalty on the concessions, which royalty Condor will have the option to reduce to a 0.5% NSR by payment of US$1 million.
The amended NSR terms of the April 2017 Assignment and Option Agreement stipulate that on exercise of the purchase option by Chakana, Condor will retain a 1% NSR on the concessions and on a 2km area of influence. Previously, Condor retained a 2% NSR. Chakana will have the right to buy down Condor's NSR to a 0.5% NSR by further payment of US $1million. Pre-production NSR payments scheduled to commence in 2022 have been eliminated.
"We are very pleased to conclude this transaction, as we believe it improves the economic potential of Soledad, which will be of benefit to Condor, as both a royalty holder, and as a Chakana shareholder" noted Condor President Lyle Davis.
Condor is an active explorer focused exclusively on Peru, supplemented by a project generator and royalty model designed to generate exploration capital whilst minimizing shareholder dilution. Our objective in advancing our portfolio of projects is the discovery of a major new precious metals or base metals deposit in Peru. Project acquisition and exploration activities are managed by the Company's Lima based exploration team.
ON BEHALF OF THE BOARD
Lyle Davis,
President & Chief Executive Officer
For further information please contact the Company at 1-866-642-5707, or by email at [email protected]
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 news release.
SOURCE: Condor Resources Inc.