TSXV Symbol: LCO
VANCOUVER, May 11 /PRNewswire/ - El Condor Minerals
Inc ("El Condor" or the "Company") is pleased to announce that it
has entered into a binding Letter Agreement with Quetzal Energy
Ltd. (TSXV: QEI) to acquire (the "Acquisition") Quetzal's
95% interest in the Horden Lake Property, a copper-nickel property
with precious metal credits located in the Province of Quebec,
approximately 200 kilometres north of Mattagami, Quebec.
Under the terms of the Letter Agreement, El
Condor will purchase Quetzal's 95% interest in the Horden Lake
Property for a purchase price of $5 million, comprised of $3
million in cash, including a $100,000 deposit to be paid on or
before May 21, 2011, and $2 million in common shares of El
Condor. The common shares will be issued at a deemed price
equal to the lesser of $0.20 per share and the price per share of a
private placement (the "Private Placement Funding") of
common shares that is undertaken by El Condor for proceeds of not
less than $3 million, which will complete concurrently with, or in
conjunction with, the Acquisition.
Completion of the Acquisition will be
conditional on, amongst other things, regulatory approval, the
parties having entered into a Definitive Agreement for the
Acquisition and El Condor's completion, to its satisfaction, of its
due diligence review of the Horden Lake Property on or before June
10, 2011. El Condor will complete the Private Placement
Funding, the terms of which are currently being negotiated, in
conjunction with the Acquisition.
Leigh Freeman, President and Chief Executive
Officer of El Condor, said "The Horden Lake project was initially
discovered in the 1960's, and is an ideal foundation upon which to
build El Condor, with outstanding potential for additional
discoveries located in one of the premier geological and
geopolitical locales in the world."
About The Horden Lake Property
The Horden Lake project is a copper/nickel
property with platinum group and precious metal credits located
within a 40 kilometer long, 1 to 1.5 kilometer wide layered
ultra-mafic rock sequence. The total land package is in excess of
52 square kilometers. The recently completed road and power line
for the Le Grande hydroelectric dam transects the district, making
it readily accessible.
Predecessor exploration work on the Horden Lake
property and district includes drilling of 18,136 meters in 73
holes between January 26, 2008 and March 19, 2009, and a Fugro
HeliGEOTEM II airborne geophysical survey that included an
orientation/calibration survey over the Horden Lake property and
592 line kilometers of data collected over the Northeastern Claim
group. The former documented a strong electromagnetic and magnetic
response of the known mineralization and the latter identified a
number of similar and very promising targets in the Northeastern
Claim group.
About El Condor Minerals Inc.
El Condor Minerals Inc. is a minerals
exploration company focused on the discovery of large precious- and
base-metal mineral systems in stable political jurisdictions.
Additional information on El Condor, its properties and exploration
activities is available at the Company's website:
www.elcondorminerals.com.
ON BEHALF OF THE BOARD OF DIRECTORS
"Leigh W. Freeman"
President & CEO
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.