{"id":37233,"title":"Nick Candy Backed Mining Company Sets Sights on £67 Million Pound Takeover of Condor Gold","publisher":"Stockmark.IT","author":"Stockmark.IT Website","published":"2024-12-03T05:35:33+00:00","modified":"2024-12-03T05:35:33+00:00","canonical_url":"https://stockmark.it/nick-candy-backed-mining-company-sets-sights-on-67-million-pound-takeover-of-condor-gold/","markdown_url":"https://stockmark.it/nick-candy-backed-mining-company-sets-sights-on-67-million-pound-takeover-of-condor-gold.md","json_url":"https://stockmark.it/nick-candy-backed-mining-company-sets-sights-on-67-million-pound-takeover-of-condor-gold.json","category":"Financial","categories":["Financial","Gold Mining","Markets","Mining"],"featured_image":"https://i0.wp.com/stockmark.it/wp-content/uploads/2022/12/gold-st.jpg?fit=800%2C400&quality=89&ssl=1","format":"news","language":"en-GB","content":"A London-listed gold miner, backed by prominent financier Nick Candy, has launched a significant bid for its rival amid a surge in gold prices reaching historic highs this year. Metals Exploration, trading on London’s junior AIM market and 38% owned by Candy’s investment vehicle, has proposed a cash and shares deal valuing Condor Gold at approximately £67.5 million.\n\nThe proposed deal structure would see Condor shareholders receive 4.05 new shares plus 9.9p in cash for each Condor share, equating to roughly 33p per share. An additional incentive of 11.1p per share could be realised if the company exceeds its base case gold discovery projections, payable in either shares or loan notes.\n\nScottish billionaire Jim Mellon, who chairs Condor, has shown support for the deal through his investment vehicle Galloway. Mellon, holding a 24.7% stake as the largest shareholder, has committed to voting against any rival bids. The Nicaragua-focused Condor, which first sought a buyer for its La India assets in 2022, has attracted attention from multiple parties.\n\nMetals Exploration, with its primary operations in the Philippines, projects gold production exceeding 80,000 ounces this year. The company’s strong financial performance is evident in its first-half results, posting revenue of $91 million and pre-tax profit of $58 million.\n\nThe gold mining sector has experienced significant consolidation as prices reached a record $2,790 per troy ounce in October. The precious metal currently trades at approximately $2,651, marking a 30% increase since the year’s beginning. Market analysts attribute this rally to ongoing geopolitical tensions in Ukraine and the Middle East, coupled with expectations of interest rate cuts.\n\nTo support the acquisition, Metals Exploration has secured a £5.5 million bridging loan from Drachs, a significant stakeholder with over 18% ownership. The loan carries a 10% annual interest rate and is due for repayment by January’s end. Condor Gold’s shares responded positively to the news, closing 19.8% higher at 28¾p in London trading."}