Condor Blanco Mines receives further funding from Jiangxi Resources
Blanco Mines (ASX: CDB) has received a further commitment from Hong Kong
based investment and trading group Jiangxi Resources Limited for
its Marianas Tailings Project in Chile.
Under this Letter of Commitment, Jiangxi has now made a $392,400 investment in Condor through a private placement of 22,422,857 shares priced at $0.0175.
This represents a 25% premium to the most recent share price of $0.014 and a vindication of the upside Jiangxi sees in the Condor.
The private placement follows Jiangxi’s previous funding of $390,000. The Hong Kong group has also committed to seek up to $1.5 million in debt funding from Asia-Pacific institutional investors to fund capital expenditure on the project.
“This is a significant development towards funding the Marianas Iron tailings project. With Jiangxi’s funding support, Condor will transition from explorer to producer in near future,” Condor managing director Glen Darby said.
“This will allow the Company to now focus on our Northern Chile exploration activities. The fact that Jiangxi has taken this placement at a premium also displays their support for Condor and the future of the company.”
Jiangxi Resources Limited is a specialist investment and trading group, providing Australian listed companies with finance and trading facilities in the Asia and the Asia-Pacific region.
It recently signed a legally binding off take agreement for up to 3.85 million tonnes of iron ore from the Marianas project over a four year period.
Under the deal, Jiangxi will acquire ore from the Marianas Tailings project from Condor at a gate price of USD$60 per tonne, which given the low operating (and capital) costs, will see Condor pocket a very nice margin on cost price.
This funding commitment and developing strategic relationship with Jiangxi Resources are significant steps to moving the Marianas tailings project into production.
The funding commitment is an effective "backing" of Condor by Jiangxi will provide the impetus for the transition into production of iron ore at Marianas.In an era where cash is king, impending cash flow generation from Marianas is a differentiator.
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