The loan documents provide for an approximate 15% average interest rate for the term of the loan with the ability to repay it earlier at Condor’s discretion.

Condor has sought a debt facility because it believes any form of equity participation in the Signet HCC projects would lead to lower valuations of the project compared to what will be obtained once the definitive feasibility study is completed.

The company is proceeding to secure the €10 million in funding as it nears completion of the full desk top review of The Duel HCC project in the Limpopo province of South Africa.

Condor has entered into agreements with Hong Kong-based Signet Coking Coal that will see it gain the right to acquire a majority stake of up to 50.3% in The Duel and Tshipise 2 projects held by Signet’s South African subsidiaries, Subiflex Proprietary.

The desktop review of The Duel is being undertaken by a third party and will confirm geological information on the project.

The heads of agreement provides for a performance-triggered option by Condor to acquire additional equity in the four projects that comprise Signet, with short-term emphasis on the highly prospective The Duel and Tshipise 2 projects.

The JORC-compliant drill-out and DFS program for The Duel is expected to be funded by Condor with costs expected to range from €10m.

The JORC-compliant drilling and resource definition program will be run in parallel and are expected to be completed by November 2014.

Condor will then be able to continue with acquisition of additional interest in Signet subject to the terms of the definitive agreement.