Condor loses spot on the ASX, plans legal battle against former directors
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Chile-focused copper and gold explorer Condor Blanco Mines is being booted off the ASX because it is unable to meet the bourse’s listing requirements.
The news follows a “forensic review” undertaken by the current board that Condor says revealed “material contraventions of the Corporations Act, the company’s constitution and the ASX Listing Rules”.
After seeking legal advice, Condor said it has “determined that it is futile to maintain the company’s suspended status or to seek reinstatement to quotation”.
Condor has been suspended from trading since May 6, 2016.
The company expects to be delisted this week.
“In response to inquiries from shareholders, Condor’s Board of Directors wishes to emphasise that its determination that there was no realistic prospect of the company being reinstated to ASX quotation was made only after considering all avenues reasonably available to rectify the compliance difficulties that existed as of 5 July 2016.”
Since July 2016 Condor’s new board of directors has been focused on resolving legacy issues with respect to compliance and finding ways to return value to the company.
But “no proposed transaction addressed or overcame the company’s historic contraventions and compliance issues”, the group said on Tuesday.
The directors said in Tuesday’s ASX announcement they were “well aware of the economic losses suffered by innocent shareholders as a result of contraventions prior to July 5, 2016”.
Condor now plans to pursue compensation for damages suffered.
How Condor plans to fund its legal pursuit, however, remains in question given it had no cash in the bank at the end of the June quarter and it had outstanding loans of $319,000.
Stockhead attempted to contact former Condor CFO Peter Dunoon but was unable to do so.