Gold miner Metals Exploration closes £90m deal to buy rival Condor

A gold miner backed by Nick Candy is closing in on a deal to buy a rival for up to £90m.

AIM-listed Metals Exploration has made a bid worth £67.5m up front, and potentially £22.6m more in the future, to buy Condor Gold.

The announcement came after the Mail revealed yesterday that Metals, 38 per cent owned by property tycoon Candy, was prepared to take a hostile stance on the bid.

But Jim Mellon, non-executive chairman of Condor and one of Britain’s richest men, has irrevocably committed to backing the deal. This means I would vote against any rival bid.

The deal will bring together two of Britain’s most colorful businessmen.

Mellon, 67, described as Britain’s Warren Buffett, owns 26 percent of Condor, which is listed on AIM and the Toronto Stock Exchange.

Candy, 51, is married to pop star and actress Holly Valance and made her fortune through luxury developments in London.

Condor shares soared 19.79 per cent, or 4.75p, to 28.75p yesterday, but are still down almost two-thirds over the last decade.

Meanwhile, metals shares fell 8.8 per cent, or 0.5p, to 5.2p.

“Metals obviously think they can get a bargain,” said Dan Coatsworth, investment analyst at brokerage AJ Bell.

The agreement will allow Metals to make the additional payment if the amount of gold found in Condor’s mines exceeds estimates.

Metals operates in the Philippines and its shares have more than doubled in the last year.

Condor Gold is smaller and owns the 2.3 million ounce La India Project in Nicaragua. It began looking for a buyer for this asset in 2022.