Condor Gold PLC on Wednesday agreed a £67.5 million takeover from Philippines-focused mineral resources firm Metals Exploration PLC.

Metals Exploration, which is backed by property financier Nick Candy, said it is offering 4.0526 shares and 9.9 pence in cash for each Condor share.

Metals Exploration said based on its closing share price last Friday, the offer values each Condor share at 33.0p or £67.5 million in total.

In addition, each Condor shareholder would be entitled to receive one contingent value right, which would entitle them to their pro rata share of $18.00 per ounce of additional contained gold JORC mineral resource discovered in excess of Condor’s base case mineral resource estimate at the group’s La India, Rio Luna and Estrella projects.

The maximum potential CVR consideration payable would amount to $28.8 million representing 11.1p per Condor share.

On Monday, the two firms confirmed they were holding talks.

Metals Exploration said it had received backing from shareholders representing around 29% of Condor shares. This includes the support of Galloway Ltd, which owns 25% of Condor.

Galloway is owned by Burnbrae Group Ltd which is, in turn, wholly owned by Jim Mellon, Condor’s chair.

Mellon said together MTL and Condor Gold would form a ‘multi-asset and multi-jurisdiction gold platform with a management team possessing a strong track record of building and operating gold mines.’

Nick von Schirnding, chair of MTL, commented said the offer represents a ‘compelling strategic opportunity which provides an exciting future platform for growth, in line with our strategy of building a cash generative portfolio of projects.’

On Wednesday, shares in Condor Gold were 2.4% lower at 27.56 pence each in London, giving it a market value of £56.3 million. Metals Exploration traded 4.3% higher at 5.58p for a market capitalisation of £96.3 million.

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