daytrading sept 20 morning, page-120

CDB ANN out
ASX Stock Code: CDB
Condor signs Chile iron ore & copper off-take MOUs
..Condor iron ore production and sales expected to start from February 2013
..Major milestone to lock in cash flow from short term
..Cash to help fund Condor drilling & development of very large projects
..Copper assets to also strengthen Condor alliance with China-based companies
Condor Blanco Mines Limited has executed non-binding Memoranda of Understanding (MOU) for near term iron ore and longer term copper off take agreements with Changes Investment Guarantee (China) Company and Jiangxi Hongyang Copper Company Ltd (CIG & JCC).
While the key terms of the MOUs are confidential, Condor has agreed on immediate pricing arrangements for the sale of Condor’s iron ore from the Chile-based Marianas iron tailings project.
The terms will be further discussed and finalised into binding Heads of Agreement after due diligence by both parties. It is expected that both HOA will be formalised by the end of the calendar year.
Condor Blanco is targeting production from December 2012 of an upgraded iron ore product from the Marianas project. Sales are then expected from February 2013. The MOU is an important step in progressing commercial arrangements for production to commence.
Condor is also in discussions with CIG & JCC about development of Condor’s other Chilean assets, which have substantial mineral potential. These assets are seeing accelerated development now that winter in Chile is over.
Further, Condor is planning the second phase drilling program at its flagship gold/silver epithermal project at Carachapampa after the success of the first phase of drilling.
“Condor is pleased with the Marianas MOU as sales of production from this project will provide cash flow and help finance Condor’s pursuit to develop its world class exploration assets,” said managing director Mr Glen Darby.
“Most Condor investors will welcome this announcement and also understand that Condor is in exploration territory where it is looking for very substantial resources. Marianas will underpin this endeavour.
“We look forward to updating the market on progress on all of the assets.”