Condor Resources Terminates OpƟon Agreement On Soledad Project
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Condor Resources Terminates Op�on Agreement On Soledad Project
Vancouver, B.C., October 7, 2024 - Condor Resources Inc. ("Condor" or the "Company") (TSXV:CN)
announces that, due to non-performance, the Company has terminated the agreement with Chakana Copper Corp. (“Chakana”) that provided a framework for Chakana to acquire a 100% interest in the Company’s Soledad concessions in Peru. Under the terms of the agreement ini�ally executed in April 2017 and subsequently amended several �mes, Chakana was required to complete a US$1,000,000 cash payment and issue CAD$200,000 worth of Chakana common shares at a price not less than $0.145/share to Condor on June 23, 2024 and a further payment of US$ 1,400,000 by June 23, 2025 (the “Agreement”). The Agreement was previously amended in good faith at the request of Chakana in March 2019, November 2020 and April 2022. This US$1,000,000 payment has not been received and, despite Condor using its best efforts, the two companies have not been able to reach alterna�ve terms acceptable to both par�es. Thus, pursuant to the terms of the Agreement, Condor has delivered no�ce of its intent to exercise its rights to resume ownership of its Soledad concessions.
Chris Buncic, President & CEO of Condor, commented, “Chakana has completed a large amount of explora�on work on the Soledad project over the years, defining a NI43-101 compliant Resource, the majority of which underlies Condor’s concessions. Many of the high-grade tourmaline breccia targets have yet to be drilled, and there remains a great deal of discovery upside on the property among these untested breccias and within the previously drilled potassic altered mineralized porphyry system confirmed at depth. Coming to revised terms with Chakana to the benefit of Condor’s shareholders has been very challenging, but with the project again in our hands, we have a vision for value enhancement for our shareholders.”
Under the terms of the Agreement, Chakana and Condor will work collabora�vely to transfer all informa�on and data, including but not limited to relevant permits, surface access, project maps, reports, drilling results, core and samples to the Condor. Chakana remains responsible for all applicable environmental remedia�on and reclama�on at the site as a result of Chakana’s ac�vi�es and is required to provide Condor with a copy of the relevant documents presented and accepted by the authori�es. In addi�on, Chakana will remove any equipment in the area.
Contemporaneously and in conjunc�on with the comple�on of these ac�vi�es and the requirements of the Agreement, Condor will grant a 1% NSR Royalty to Chakana covering Condor’s Soledad concessions and a 2 km area of interest for the royalty should Condor acquire addi�onal concessions in the area. This royalty is executed as a public deed and registered upon comple�on of all closing ac�vi�es.
Condor will take all steps necessary for it to expedi�ously resume its possession and con�nued explora�on of the Soledad Property.
Summary of Condor’s Soledad Project
The Soledad Au-Ag-Cu property is located in the Yanacocha – Pierina epithermal precious metals Ter�ary-aged volcanic belt of the Central Andes, approximately 34 km south of the Pierina gold mine. The Company owns 3 concessions with a net area of 10.55 sq. km. Previous explora�on on the concessions iden�fied a number of high-grade quartz-tourmaline-sulfide breccia pipes outcropping at surface and focused on a local mineralized porphyry target. In 2016, Condor op�oned the property to Chakana under terms that would allow it to acquire 100% of the project upon comple�on of the op�on requirements. Chakana began its explora�on at Soledad in 2017, focusing on the high-grade breccia pipes.
The original op�on agreement from 2017 has been subject to a number of amendments to allow for a small corporate reorganiza�on, a sale of a 1% NSR back to Chakana in 2019, and delays in project work due to COVID-19, permi�ng challenges, and Chakana’s delays in financing. Details of these amendments are detailed in the Company’s financial disclosures available on SEDARplus under Condor’s profile as well as the company’s website.
Chakana has also acquired addi�onal mineral rights in the area from third-par�es and has completed a number of explora�on drilling programs, with a total of 60,741 m of drilling in 259 holes completed to the end of 2021. On January 11, 2022 Chakana released their maiden inferred resource es�mate for the Soledad project. Per the NI43-101 report published by Chakana Copper Corp. available under Chakana’s SEDARplus profile, the Inferred Mineral Resource contains “4.8 million tonnes grading 0.72 g/t gold, 61 g/t silver and 0.97% copper amenable to extrac�on by underground mining methods plus an addi�onal 1.9 million tonnes grading 1.29 g/t gold, 37.1 g/t silver and 0.65% copper amenable to extrac�on by open pit mining methods”. The es�mate included Breccias #1, #5, #6, and #7 on Condor’s concessions, and from the Huancarama East, Paloma East, and Paloma West breccia pipes, which are not located on Condor’s concessions. Approximately 71% of the tonnage in the inferred resource es�mate is located on Condor’s concessions.
Technical Disclosure/Qualified Person
The scien�fic and technical informa�on in this press release has been reviewed and approved by Dr. Quinton Hennigh, (P.Geo., PhD), a Qualified Person as defined in Na�onal Instrument 43-101 and a Director of Condor Resources.
About Condor Resources Inc.
Condor Resources is a precious and base metals explora�on company focused on its por�olio of projects in Peru. The Company’s flagship project, Pucamayo, is an 85 km2 property containing a high sulfida�on epithermal system with disseminated precious metals mineraliza�on with a large lithocap altera�on visible at surface. The Company has op�oned several large projects to partners who con�nue to advance these projects and has a number of priority and prospec�ve projects warran�ng further explora�on by Condor. The Company’s award-winning explora�on team in Peru has a long history of success in discovering and advancing high quality explora�on projects and managing the social aspects of its explora�on ac�vi�es.
For more informa�on, please visit the Company's website at www.condorresources.com.
ON BEHALF OF THE BOARD
Chris Buncic President & Chief Execu�ve Officer For further informa�on please contact the Company at 1-866-642-5707, or by email at [email protected]
Forward-Looking Statements
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Although the Company believes that the expecta�ons reflected in applicable forward-looking statements are reasonable, there can be no assurance that such expecta�ons will prove to be correct. Such forward-looking statements are subject to risks and uncertain�es that may cause actual results, performance or developments to differ materially from those contained in such statements.
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