TORONTO, June 26, 2003 (PRIMEZONE) -- Condor Gold Corp. (Pink Sheets:CDRGF) is pleased to announce that it has signed a private placement term sheet with IBK Capital Corp. to finance its diamond subsidiary (to be renamed Dialex Minerals, Inc.) by causing Dialex to issue 12,000,000 common shares at CDN. $0.20 per share and 2,000,000 warrants at an exercise price of CDN. $0.25. Dialex Minerals, Inc. will be quoted on the OTC-Bulletin Board. 8,000,000 shares represents flow through financing which will be targeted to complete ground geophysics and diamond drilling on the company's diamond exploration properties in the Attawapiskat-James Bay Lowlands of Northern Ontario. The other 4,000,000 shares (with 2,000,000 warrants attached) will be targeted to cover additional staking, and deal costs. The issue is for CDN. $2,400,000 and is on a best efforts basis. Closing is scheduled for on or about July 15th, 2003. The transaction is conditional upon Condor closing its acquisition of an OTC-BB trading shell corporation into which it will vend its diamond subsidiary and is also conditional upon necessary regulatory and board approvals. Upon completion of the transaction Condor Gold Corp. will retain in excess of a 60% controlling interest in Dialex. Initial market cap of Dialex will be CDN. $7, 200,000.
Condor, as indicated in our Press Release of March 26, 2003, is involved in a Joint Venture Agreement with 1458216 Ontario Ltd. for the exploration and development of its diamond properties in the Attawapiskat-James Bay Lowlands of Northern Ontario. The Joint Venture, in which Condor has a 75.92% interest has acquired an extensive data package as a result of an expenditure of $500,000 which occurred in March through June 2003. This data package has acquired detailed geophysical data (including some geochemical data) over an area ranging some 300 kms from Akimiski Island off the west coast of James Bay leading to the west through the Debeers Victor pipe area and through to the west of the Kyle kimberlites. Many of Condor's claims are in close proximity to the Debeers Victor Pipe Project, the Metallex properties and the Kyle kimberlites, all of which have received substantial public attention recently. Condor's geophysicists are currently finalizing their evaluation and prioritization of numerous targets identified by the geophysics and geochemical data.
One of Condor's priorities will be to stake further priority targets indicated by the geophysics. In April and May of 2003 Condor carried out an additional staking program which acquired some 18,000 additional acres of claims containing approximately 35 targeted potential kimberlitic features bringing its acreage total in the James Bay Lowlands to approximately 71,000 acres. The recent staking program was carried out as a result of the initial evaluation and prioritization made by its geophysicists on the data packages. Significant additional staking will occur once final evaluation of the data package is completed.
CLOSURE PLAN FOR GOLD ADVANCED EXPLORATION/PRODUCTION
On Condor Gold Corp.'s Jackrabbit gold project in Chester Township near Gogama, Ontario, the Corporation's consulting engineers, SNC Lavalin Inc. are completing final amendments to a Notice of Project, Status Form-6 for advance exploration/production. Condor had expected that the original closure plan would be filed and approved prior to this date however, necessary amendments to this plan are being carried out by SNC Lavalin. The Notice of Status Form-6 is expected to be filed in early July, 2003. The expected approval date and completion of the comment period are expected to occur by August, 2003 at which time Condor would be in a position to commence it's advanced exploration plan in respect to its Area 3 Open Pit in the Jackrabbit Gold Project at Gogama.
CONDOR GOLD CORP.
Condor Gold Corp. is a public company incorporated under the laws of the Province of Ontario and is traded on the U.S. Pink Sheets under the quotation symbol: CDRGF. The Corporation, through its subsidiaries, owns or controls interests in gold properties in the townships of Chester, Benneweis and Yeo, with a total strike length of eighteen miles. The Jackrabbit Project is located adjacent to Highway #144 just south of the town of Gogama. In addition, as referred to above Condor is involved in diamond exploration in the Attawapiskat/James Bay Lowlands of Northern Ontario.
For further information, contact:
Alexander Stewart: Chairman and C.E.O., Condor Gold Corp.
Telephone: (416) 368-6161
Facsimile: (416) 368-7805
Address: 390 Bay Street, Suite 2020
Toronto, ON M5H 2Y2
Website: www.condorgold.com
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities of the Corporation in any jurisdiction. The purchase warrants and the underlying common shares described above were not registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent an applicable exemption from the registration requirement.