News Summary
On December 15, 2025, Condor Resources announced it has closed the previously announced sale of its Soledad project in Ancash, Peru, to Compañía Minera Lincuna S.A. The total consideration is US$3,000,000 plus a 1% Net Smelter Royalty (NSR) for Condor. The payment structure consists of US$100,000 received upon the Letter of Intent (LOI), US$500,000 on closing, and twelve quarterly payments of US$200,000 over the subsequent three years. The CEO, Chris Buncic, stated the sale strengthens the company’s balance sheet and allows them to focus on their “highest-conviction discovery opportunities,” specifically mentioning the Huiñac Punta silver project.
Material Impact
The closing of the Soledad sale is a material positive event for Condor. It provides an immediate and crucial cash injection of US$600,000 (approximately C$820,000), which significantly strengthens a balance sheet that held only C$298,639 in cash as of August 31, 2025. This non-dilutive funding successfully executes management’s stated strategy of monetizing non-core assets to fund exploration on its primary projects.
The deal also provides a predictable future revenue stream of US$800,000 per year for three years. While not enough to fund a major exploration campaign, this cash flow should be sufficient to cover general and administrative expenses, thereby reducing the need for future dilutive financings for overhead costs.
However, from a critical perspective, this news was largely anticipated by the market. The LOI was announced on June 26, 2025, and the stock price has since rallied from C$0.13 to a recent high of C$0.23. Therefore, while the closing removes uncertainty and is fundamentally positive, it is likely already priced into the stock.
Looking back at the company’s track record, this successful execution is a welcome positive, but it follows several misses on projections:
– In December 2024, management cancelled a financing at C$0.15, stating they expected “less-dilutive” opportunities. They subsequently raised capital in May 2025 at a more dilutive price of C$0.12.
– In February 2025, management anticipated the Pucamayo South East DIA permit approval “shortly,” but in March 2025 announced the application had been disapproved and was under appeal.
The successful Soledad transaction provides a much-needed operational and financial runway. The focus now shifts entirely to exploration execution, particularly at the Huiñac Punta project.
Catalysts
– Huiñac Punta Drill Program: The company has stated its intent to use the Soledad proceeds to drill its fully-permitted Huiñac Punta silver project. Watch for news on the commencement of this 1,500-meter Phase 1 drill program and, subsequently, the assay results. Positive results are the most significant potential catalyst for the stock.
– Pucamayo DIA Appeal: An update on the status of the appeal for the disapproved Pucamayo South East DIA permit. A successful appeal would re-open a key project for future exploration.
– Cobreorco Progress: News flow from partner Teck Resources on exploration activities at the Cobreorco project, for which the DIA was approved in June 2025. Any drilling by Teck could provide significant upside.
– Lucero Receivable: The US$1.1 million payment from Element79 Gold Corp. is due by June 30, 2026. Any updates on Element79’s progress or ability to pay will be important.
– Q3 Financials (ending Nov 30, 2025): The next financial statements will be critical to see the company’s cash position just prior to the receipt of the US$500,000 closing payment from the Soledad sale and to assess the ongoing cash burn rate.
Materiality Conclusion
The successful closing of the Soledad asset sale is rated Material – Positive. It provides critical non-dilutive funding that secures the company’s financial position for the near term, validates a key part of management’s strategy, and allows the company to focus its resources on its core exploration target at Huiñac Punta. While the event was anticipated, the confirmation and receipt of cash are significant de-risking milestones for a junior explorer.
