In July, Jiangxi indicated it would commit up to $1 million of equity into Condor to support near term development and cash flows from Marianas project in Chile.
Jiangxi has now invested an additional $310,000 in Condor at $0.011 private placement per share.
New facility in the offing
Significantly, Jiangxi and Condor have just signed a new binding term sheet for Jiangxi to provide up to another $5 million to further develop and expand in due course expand production at Marianas.
Jiangxi Resources Limited is a specialist investment and trading group operating in the Asia-Pacific region.
Investment Interest from the Middle East
Condor also fielded "significant debt funding interest" from Middle-Eastern institutional investors - following a recent company investor awareness road-show.
Marianas processing agreement
This month, Condor signed a heads of agreement (HOA) with Chilean company Lacerta Finance and Mining Spa that would see production and processing of tailings at its Marianas project in Chile become a reality.
It successfully processed two 40 tonne bulk samples of ore from Marianas that resulted in a positive magnetite recovery grading up to 63% iron.
Lacerte has relocated their magnetite plant and mining equipment directly to the Marianas Project.
This would see cash flows building from 60,000 tonnes a month production of ore with 3 months of permitting with 100,000 tonnes per month (15,000t/month Fe concentrate) to be reached before the expiry of 12 months.
The project, apart from bringing in cash flows, will assist Condor's exploration programs throughout its highly prospective epithermal gold-silver and porphyry copper-gold projects in Chile.
The Marianas Project covers the mining and upgrading of a known supply of magnetite and hematite tailings located just outside the mining city of Copiapo.
It has an estimated 11 million tonnes of magnetite-bearing historical tailings sitting there which can be exploited and profitably so.
Glen Darby, Condor managing director said of today's funding: "Although we have already taken the necessary steps to put Marianas into production with minimal capex, we are glad to have in place another agreement that means that Condor will have a reliable source of finance available irrespective of difficult capital market conditions.
"Condor views the funding commitment is as an important part of its holistic capital management strategy, which will also in due course see project debt finance funding raised once the timeline of production revenues is finalised."
Marianas Iron Tailings Project funding priority
Condor Managing Director, Mr Glen Darby, noted: "The Marianas iron tailings project will receive total funding priority to support the development through to production.
Once operational this program will generate ongoing cash flow to continually support our exploration projects".
The funding brings Condor closer to first production from the Marianas iron tailings project. Key to it is the low capex and processing from a local Chilean company which would provide a nice profit margin for Condor. Interest from the Middle East in debt funding to expand Marianas production demonstrates the robust project economics but also in the monetisation of Marianas decision by Condor. The pieces are moving into place.
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