/NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES FOR DISSEMINATION
IN THE UNITED STATES/
TSXV: LCO
US Symbol: ECNRF
VANCOUVER,
Dec. 21, 2012 /CNW/ - El Condor
Minerals is pleased to report that it has arranged debt financing
of an aggregate $2,000,000 by way of
convertible loans to the Company. Each of two concurrent
convertible loans are for a term of five years, bear interest at a
rate of 5% per annum, payable quarterly, and will be secured
against the assets of the Company. The proceeds from the
financing will be used to retire the Company's current $2,000,000 debt, which is due and payable on
December 31, 2012.
All or a portion of the principal amount of the
loans will be convertible for common shares in the Company at the
price of $0.10 per common share, in
whole or in part at the lender's option, at any time during the
5-year term. However should the 20-day average trading price
of the common shares of the Company on the TSX Venture Exchange
(the "Exchange") exceed $1.00, the
lenders will be obliged to convert the outstanding loan principal
to common shares of the Company at the price of $0.10 per share. The loans also include a
demand provision whereby the lenders can demand repayment at any
time after the second anniversary of closing upon 120 days notice
duly given to the Company.
Closing of the debt financing is subject to a
number of conditions, including receipt of all necessary corporate
and regulatory approvals. All securities issued in connection
with the financing will be subject to a statutory hold period of
four months plus a day from the date of issuance in accordance with
applicable securities legislation. The Company may pay finders'
fees on a portion of the financing, subject to Exchange
approval.
About El Condor Minerals Inc.
El Condor Minerals Inc. is currently developing
the Horden Lake Cu-Ni Project, an advanced exploration stage
copper-nickel deposit in Quebec.
Horden Lake is a NI 43-101 compliant resource calculated effective
April 2009 using the Ordinary Kriging
method and a 0.5% copper cut-off, with 8,759,200 Indicated Tonnes
at 0.88% Cu and 0.21% Ni and 7,791,195 Inferred Tonnes at 0.87% Cu
and 0.25% Ni. The resource is unbounded at depth as well as along
both its northeasterly and southwesterly strike extensions, where
historic drilling by INCO continues to intersect the
mineralization.
Additional information on El Condor, its
properties and its exploration and development activities is
available at the Company's website: www.elcondorminerals.com.
ON BEHALF OF THE BOARD OF DIRECTORS
"Leigh W. Freeman"
President & CEO
This news release does not constitute an
offer to sell or a solicitation of an offer to buy any of the
securities in the United
States. The securities have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act") or any state securities laws
and may not be offered or sold within the
United States or to a U.S. Person unless registered under
the U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available.
FORWARD LOOKING STATEMENTS: This press
release contains forward-looking statements. Forward-looking
statements are statements that are not historical facts and are
generally, but not always, identified by the words "expects",
"plans", "anticipates", "believes", "intends", "estimates",
"projects", "potential" and similar expressions, or that events or
conditions "will", "would", "may", "could" or "should" occur.
Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and actual
results may differ materially from those in forward looking
statements. Forward-looking statements are based on the
beliefs, estimates and opinions of the Company's management on the
date such statements were made. The Company expressly
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise.
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.