Condor and Element79 Agree on Restructured Terms for Lucero Project
Condor restructures Lucero to cure default, securing $1.1m cash to fund exploration at its Peruvian assets.
Condor Resources Inc. and Element79 Gold Corp. have agreed to restructured payment terms for the sale of the Lucero project in Peru, resolving a previous default. Under the new agreement, Element79 will pay a $100,000 non-refundable deposit upon signing, with a $1.0 million balance due at closing, which is targeted for August 25, 2026.
The remaining consideration is divided into two plans. Plan A requires a $4.05 million payment by July 31, 2027. Plan B, which serves as a default trigger, involves four milestone-linked payments totaling $6.0 million payable between 2028 and 2033. The MLDS share pledge securing Element79's obligations remains in full force. Condor intends to use the proceeds to advance its flagship Pucamayo property and the high-grade silver discovery at Huiñac Punta.
Condor Resources Inc. (CN) has completed a restructuring that resolves the overhang associated with its June 2025 default, providing immediate liquidity of $1.1 million CAD and creating medium-term upside potential valued between $4.05 million and $6.0 million. This agreement follows prior negotiations and aligns with management’s stated strategy of monetizing assets to fund exploration.
The deal preserves Condor’s security interest and keeps the project on a defined timetable, reducing execution risk without eliminating it. While the restructuring offers positive implications for cash flow and risk mitigation, it does not represent a fundamental shift in the company's trajectory or valuation. The market likely priced in the need for a resolution, making this an expected, incremental update.
Condor Resources Inc. (CN) is a pre-revenue junior explorer focused on gold, copper, and silver projects in Peru. The company’s flagship projects include Pucamayo, a high-sulphidation epithermal Au/Ag/Cu deposit; Cobreorco, a Cu-Au porphyry/skarn joint venture with Teck; Lucero, an Au-Ag project optioned to Element79; and Huiñac Punta, a CRD Ag/Cu/Zn deposit.
The company is currently in the exploration and evaluation phase, advancing multiple targets while monetizing legacy assets, such as the Soledad sale, to fund operations. Management emphasizes a disciplined approach to portfolio optimization, divesting lower-conviction assets to focus on high-grade discoveries.