A mining group whose financier Nick Candy is the largest shareholder is set to snap up a London-listed gold explorer to create an enlarged group worth more than £150 million.
Sky News has learned that Metals Exploration, also listed on the AIM junior market, is close to completing a cash and stock deal to acquire Condor Gold, an exploration and development company focused on Nicaragua in Central America.
Mining industry sources said a deal could be announced as soon as this week, at a substantial premium to Condor Gold’s current valuation.
If confirmed, it would be a further step in the ongoing consolidation process among the world’s gold mining companies, including smaller listed companies.
Metals Exploration, about 35% owned by Mr Candy, the prominent real estate entrepreneur, focuses on gold assets in the Philippines and owns the Runruno project in the north of the country.
A source close to discussions with Condor Gold said Metals Exploration had secured irrevocable commitments in recent days from a number of Condor Gold investors to vote in favor of the proposed deal.
Condor Gold is backed by Jim Mellon, a well-known stock investor from London.
Mr. Mellon has also been president of the company for two years.
Metals Exploration, whose shares have more than doubled in the past 12 months, has a market capitalization of just under £100m.
Shares in Condor Gold have risen by two-thirds in the same period, giving it a valuation of around £47m.
Metals Exploration declined to comment on Sunday, while Condor Gold was contacted for comment.