Condor Blanco Mines (ASX: CDB) is now fully financed for all operations including the commencement of full scale mining at Marianas in Chile and feasibility work at the newly signed Signet Hard Coking Coal projects in South Africa.
This follows its placement of 122,290,236 shares worth $1,467,482.83 including over $1 million by UK corporate broker Beaufort Securities.
Notably, this third and final tranche, which was priced at $0.012, completes the full $2 million investment subscription with Beaufort acting as placement agent that was signed in February.
Two earlier tranches were issued at $0.008, a premium to the then price of $0.006.
"Completion of the Beaufort raise gives us the strongest possible balance sheet as Condor becomes a mining company," managing director Glen Darby said.
"We are very pleased with the work Beaufort have done to get Condor's value proposition out to a broader investment community and believe this has been useful in supporting the rerating of Condor's share price over recent months."
Marianas Magnetite Tailings Project
The recent commercial scale trial has returned encouraging results, returning mined head grade of 17.88% iron, 11.68% contained magnetite and Davis Tube Test contained iron in the 21.9 tonnes of concentrate produced of 69.6%.
This surpasses the Scoping Study results which had a mined head grade of 12.61% and 7.29% contained magnetite as well as 65.22% DTT iron.
The Marianas Magnetite Tailings Project covers the mining and upgrading of a known supply of magnetite and hematite tailings located just outside the mining city of Copiapo.
Condor Blanco holds 50% of the project and has the right to acquire 100% of this project prior to 30 June 2014.
Tailings would be processed onsite into a saleable concentrate that would then be transported to an iron ore export facility at Caldera via the existing freeway.
The company has a Heads of Agreement with Lacerta Finance and Mining, a Chilean mining contractor, that will lead to the processing of 60,000t/month and within three months of permitting, 100,000t/month to be reached before the expiry of one year.
Lacerta will relocate its recently purchased magnetite plant and all necessary mining equipment to Marianas on receipt of final mine permits.
South African Coking Coal
The company had previously signed agreements for the right to earn a stake in The Duel, Universal Annex and Mopane projects, all located in the Soutpansberg Coalfield of northern South Africa from Hong Kong company Signet Coking Coal Limited (Signet).
Signet holds 74% of the projects, with the remainder held by a Black Economic Empowerment partner as required under South African law.
Condor will gain an initial 33% interest in Signet by providing US$5 million to be spent on the drilling and feasibility work at The Duel.
it holds an additional option over the land holding that forms the Tshipise 2 project that sits east along the same seam as the flagship The Duel project.
With Condor Blanco Mines now fully financed for all operations, the next catalysts are:
- First production from the Magnetite Tailings Project that will generate cash flows for a company that is lightly valued at around $5 million;
- Completing debt funding of €10 million from Europe; and
- Results from Feasibility work on The Duel Hard Coking Coal Project could add to the company's valuation.
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