TSXV: LCO
US Symbol: ECNRF
/NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
VANCOUVER,
Jan. 31, 2013 /CNW/ - El Condor
Minerals announces that it has amended the terms of its previously
announced $2,000,000 financing.
Under the amended terms, $400,000 of
the financing will be by way of a convertible loan and $866,500 will be advanced under a non-convertible
loan. Each of the two concurrent loans are for a term of five
years, bear interest at a rate of 5% per annum, payable quarterly,
and will be secured against the assets of the Company. In
addition, the Company will complete a non-brokered private
placement of 14,670,000 common shares at a price of $0.05 per common share for gross proceeds of
$733,500. The proceeds from the
financing will be used to retire the Company's current $2,000,000 debt.
All or a portion of the principal amount of the
convertible loan will be convertible for common shares in the
Company at the price of $0.10 per
common share, in whole or in part at the lender's option, at any
time during the 5-year term. However should the 20-day
average trading price of the common shares of the Company on the
TSX Venture Exchange (the "Exchange") exceed $1.00, the lender will be obliged to convert the
outstanding loan principal to common shares of the Company at the
price of $0.10 per share. Both
of the loans also include a demand provision whereby the lenders
can demand repayment at any time after the second anniversary of
closing upon 120 days notice duly given to the Company.
Closing of the financing is subject to a number
of conditions, including receipt of all necessary corporate and
regulatory approvals. All securities issued in connection
with the financing will be subject to a statutory hold period of
four months plus one day from the date of issuance in accordance
with applicable securities legislation. The Company may pay
finder's fees on a portion of the financing, subject to Exchange
approval.
About El Condor Minerals Inc.
El Condor Minerals Inc. is currently developing
the Horden Lake Cu-Ni Project, an advanced exploration stage
copper-nickel deposit in Quebec.
Horden Lake is a NI 43-101 compliant resource calculated effective
April 2009 using the Ordinary Kriging
method and a 0.5% copper cut-off, with 8,759,200 Indicated Tonnes
at 0.88% Cu and 0.21% Ni and 7,791,195 Inferred Tonnes at 0.87% Cu
and 0.25% Ni. The resource is unbounded at depth as well as along
both its northeasterly and southwesterly strike extensions, where
historic drilling by INCO continues to intersect the
mineralization.
Additional information on El Condor, its
properties and its exploration and development activities is
available at the Company's website: www.elcondorminerals.com.
ON BEHALF OF THE BOARD OF DIRECTORS
"Leigh W. Freeman"
President & CEO
This news release does not constitute an
offer to sell or a solicitation of an offer to buy any of the
securities in the United
States. The securities have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act") or any state securities laws
and may not be offered or sold within the
United States or to a U.S. Person unless registered under
the U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available.
FORWARD LOOKING STATEMENTS: This press
release contains forward-looking statements. Forward-looking
statements are statements that are not historical facts and are
generally, but not always, identified by the words "expects",
"plans", "anticipates", "believes", "intends", "estimates",
"projects", "potential" and similar expressions, or that events or
conditions "will", "would", "may", "could" or "should" occur.
Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and actual
results may differ materially from those in forward looking
statements. Forward-looking statements are based on the
beliefs, estimates and opinions of the Company's management on the
date such statements were made. The Company expressly
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE El Condor Minerals Inc.