El Condor to raise $6 million (May 25, 1992)

The placement of 1.5 million units at $4 per unit is expected to raise about $6 million for El Condor Resources (VSE). The company plans to use the funds for work on its 60% owned South Kemess copper-gold project in north-central British Columbia.

The remaining 40% interest in the property is owned by St. Philips Resources (VSE).

Planned work includes further diamond drilling, bulk sampling, metallurgical testing, deposit modelling and infrastructure costs. Previous work on the project has outlined minable reserves of 228 million tons grading 0.23% copper and 0.019 oz. gold per ton based on a copper-equivalent cutoff grade of 0.4%.

Brokers Goepel Shields and Yorkton Securities will handle the issue on a “best efforts” basis. The units include a share plus half a warrant, with two warrants required to purchase an additional share at $4.25 to the end of 1992. The company plans to complete up to a third of the issue as flow-through units. The placement will initially be completed as a private placement of 8% convertible promissory notes to be subsequently qualified for resale by the filing of a prospectus.