Condor Resources is focused on generating shareholder value by advancing the discovery of precious metals in Peru. Condor currently has an active portfolio of 12 targets and four joint venture agreements. Seven projects are 100% owned, two of which have drill programs underway. All projects are located exclusively in Peru, allowing Condor’s technical team to focus their expertise on a single region making Condor Peru’s leading project generator.
Our Model
Condor Resources is an explorer and project generator. Unlike junior exploration companies with a single project focus that ultimately determines the success or failure of the company, a project generator holds a large portfolio of projects at various stages with the goal of finding partners who will advance the projects. We currently have a portfolio of 12 projects, exclusively in Peru.
How a Project Generator Works
After developing a mineralization hypothesis, collecting data and compiling research, a project generator will stake claims or acquire mineral rights on promising prospects. A project generator then completes preliminary exploration work on the property through geological mapping, geochemistry and geophysics. At that point, we decide to advance the project ourselves, or work to secure an option agreement with a partner that will continue more advanced exploration. The option agreement typically gives the partner the right to earn a stated interest in the project, subject to completion of an agreed upon amount of exploration within a certain timeframe, and usually combined with annual cash payments. If the partner meets their obligations and earns an interest in the project, a joint venture is formed, and the both parties contribute to the next stage of exploration on the property. During the option stage, the partner may choose to discontinue with the project, and return the property to the project generator.
Exploration Lifecyle
Benefits of a Project Generator
With over 2000 exploration companies listed on the TSX and TSX.V, there is no shortage of mining stories pining for investment dollars. While the rewards can be great, the risks for investors are high and the chances of a major discovery are small. With the project generator model, multiple land packages are staked and held in a large portfolio. The company then seeks joint ventures with larger mining companies to fund exploration advancements. The benefits to shareholders are twofold:
Less Dilution
To fund exploration work, most junior mining companies rely on their shareholders for capital expenditures. This often results in share dilution, and if not managed properly, can create dismal returns for investors. In contrast, a project generator seeks partnerships with larger mining companies who agree to advance the projects forward under certain terms. This allows the project generator to access capital for exploration work while limiting share dilution or eliminating it altogether.
Diversified Portfolio
Investing in mining can be risky. The odds of finding a major discovery are small. Which is why seasoned investors know that a diversified exploration portfolio is a strategic way to reduce risk. Shareholders of a project generator own multiple projects, each with their own exploration upside. If one project fails, the project generator will not cease to exist, as it owns many other projects with viable discovery options.
Peru
Peru is one of the world’s top producers of precious and base metals. The mining industry plays a critical role in the Peruvian economy. Not only is it home to world-class mineral deposits run by some of the largest mining companies, but the Peruvian government has also worked to ensure the country has the right legislation and policies in place to attract mining investment. In fact, in the Fraser Institute’s Annual Survey of Mining Companies, Peru ranked just below British Columbia in the Investment Attractiveness Index (2016). Condor’s management and technical team have decades of experience working in Peru and developing positive working relationships with various communities.
Technical Team
Condor’s technical team has been together for over 15 years and is led by award-winning geologists. With more than 40 years of combined experience in the region, the exploration team has a long list of past discoveries and awards including the Breapampa-Andrea high grade gold-silver mine, the Rio Blanco Cu-Mo porphyry deposit, and others. Along with Condor’s Technical Advisory Board, Ever Marquez, VP Exploration, has been building positive working relationships with local community members for over a decade.
