By 65.4 million ordinary shares
Current Share Price: $0.07 Market Capitalisation: A$4.6 million Cash: $1.5 million BoardLaurence Freedman AM, Chairman
Ross Gillon, Non Exec Director
Robert Schuitema, Company Secretary and Non-Exec Director
Senior ManagementJohn McKinstry, Chief Operating Officer
Andrew Jones, Exploration Manager
Principal and Registered Office12 St. Georges Terrace
Perth WA 6000
+ 61 8 9225 5544
Mailing AddressGPO Box 2567
Perth WA 6001
Media & Investor RelationsDavid Greer
Radar Group
+61 2 8256 3307 davidg@radargroup.com.au
Dear Shareholder,
I am writing to bring you up to date with an important matter
which should have a substantial long term positive effect on
the future of Condor Metals Limited.
In early December Condor entered into negotiations with Inca
Minerals Limited, an Australian company with the rights to
acquire highly prospective copper-gold concessions in
Peru.
John McKinstry, Condor's COO and geologist Wade Johnson
travelled to Peru and spent a week examining the Inca
concessions together with the Managing Director of Inca and
other personnel. They returned highly enthusiastic with
regard to the prospects and for one deposit in particular
called Chanape, some 100 km from Lima, Peru's capital.
Located within a proven mineralisation province which
contains the massive Chinalco copper-gold deposit and
Nyrstar' s gold-silver- copper mine. Chanape has, in the
opinion of both Condor's and Inca's technical personnel, the
potential for the discovery of a substantial mineral deposit,
primarily copper-gold-silver, in a porphyry
mineralisation. There has been some mining on this area in
the past by locals and a number of holes have previously been
drilled, the assays of which are highly promising.
Condor entered into negotiations with Inca in mid December.
We recently announced via the ASX our intention to make a
takeover bid for all of the shares in Inca. The Inca
Directors, who between them own some 27%, have agreed to sell
all their shares and their Board unanimously recommends that
their shareholders do likewise.
We live in a global economic environment and the cost of
finding a substantial base metal or copper-gold deposit in
Peru is not substantially greater to finding one in
Australia. However the high level of exploration in Australia
now makes a reasonably priced acquisition and subsequent
discovery of a significant deposit difficult for a small
company like Condor, while the relatively low level of
exploration in Peru and the particular opportunity presented
to us by Inca gives us an increased possibility that we may
find something of significance.
Since announcing our intention to proceed, the Condor share
price has risen some 40%, albeit on small turnover. In the
event that the deal is successful, a lot more shares will be
on issue and this in itself should help to alleviate the
problem of low liquidity and small turnover which has been
typical of Condor shares in the past.
The deal, if successful will, we believe, make a positive
contribution to Condor's future: in the event of positive
results from the initial planned drilling program at Chanape,
we would anticipate an appropriate adjustment to the Condor
share price and therefore to the value of your investment.
Furthermore, we anticipate that, on the completion of the
transaction and the issuance of Condor shares to existing
Inca shareholders, there will be a freer flow of trades; this
in itself should encourage new investors and enable the share
price to better reflect the underlying assets of your
company.
While I do not expect every Condor shareholder to be in
favour, this is an opportunity which your Board and the
geological and technical staff of the Company deem to be
highly prospective, with potential over time, to
become a substantial asset if the current geology and data
can be proven by drilling, assaying and development work.
Our Bidder's Statement will be released to the ASX shortly.
This contains detailed information regarding the transaction
and the reasons behind it.
I will keep you informed as to progress both via ASX releases
as well as emails and letters to shareholders. Yours
sincerely.
Laurence Freedman AM Chairman
Condor Metals Limited is an Australian listed company (ASX code: CNK)
focused on multi-commodity projects in Western Australia.
The Company's priority targets are:
