Nick Candy-backed miner eyes Condor Gold takeover

A London goldminer backed by the financier Nick Candy has made an offer for a rival in the latest example of the consolidation that has swept the sector as the price of gold has touched new highs this year.
Metals Exploration, which trades on London’s junior Aim market and is 38 per cent owned by Candy’s investment vehicle, has said that it is in advanced discussions over a bid for Condor Gold, which would form a company worth about £150 million.
Condor Gold, which is also listed on Aim as well as in Toronto, owns mines in Nicaragua and has been focused on developing its La India project there. The loss-making company, which is chaired by the Scottish billionaire Jim Mellon, first sought a buyer for its La India assets in 2022.
Metals Exploration is focused on assets in the Philippines and expects to produce more than 80,000 ounces of gold this year. It generated revenue of $91 million and a pre-tax profit of $58 million in the first six months of the year.
Shares in Condor Gold were trading 22.5 per cent higher at 29½p in morning trading on Monday in London.
Condor said it had also received another non-binding offer from Calibre Mining, a Canadian goldminer with assets across North America and Nicaragua.
Calibre confirmed that it had been interested in acquiring the La India project but said it was not currently in discussions with Condor. “At this time, unless Condor is willing to re-engage in meaningful discussions, Calibre does not envision completing an acquisition,” the company said.
Goldminers have sought to capitalise on the rally in the price of gold by snapping up assets in the sector. In September, Centamin, then a FTSE 250 goldminer, recommended a $2.5 billion takeover offer from AngloGold Ashanti, an American rival.
The price of gold hit a record $2,790 per troy ounce in October and currently trades at about $2,651 after rallying 30 per cent since the start of the year.