Condor facing another spill

TROUBLED junior Condor Blanco Mines has received a requisition to remove the current board.
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Kristie Batten

The company said substantial shareholders were looking to replace the current board with Patrick Volpe, Vince Truda and Ramon Jimenez.

Condor said it recognised the right of shareholders to call the vote, but was assessing the potential impact on the company, particularly relating to its position with creditors.

Creditors, including directors and advisors, have been forbearing required payments due to the company’s dire position.

The junior has been suspended from trading since May 2016 due to ASX concerns about certain share transactions entered into by the company under the previous board, as well as concerns around disclosure up until July 2016.

The company was put into administration in mid-2016, which was deemed invalid by a court.

It came after the former board was voted out by shareholders and replaced with a new board led by shareholder Joshua Farquhar, who remains as executive chairman.

The previous directors were convicted rapist Glen Darby and his reported flatmate Timothy Stops.

Other previous directors of the company included Darby’s sister Lia Darby and his reported ex-girlfriend Michelle Feruglio.

Condor is facing an investigation by the Australian Securities and Investments Commission into suspected contraventions of law by the former directors between February 1, 2014 and July 4, 2016 (the day before the new board took control).

Condor has been in talks with the ASX regarding the requirements to be reinstated. The company will have to re-comply with listing rules and resolve improper share issues.

That will require the lodgement of a prospectus, the company having net tangible assets of at least $4 million or a market capitalisation of $15 million, and at least 300 shareholders.

The company noted it had negative assets and less than 70 shareholders

Condor predicted the cost of the re-compliance would be at least $500,000 and there was no certainty it would occur.

Earlier this month, the company reported it had placed 14 million shares at 0.15c per share to sophisticated and professional investors to meet immediate administration expenses and reduce current liabilities.

Condor had just $10,000 at the end of September.

The board continues to explore ways in which it can pursue compensation for the damage caused to the company by the improper share transactions.

Voluntary administration is another avenue being considered.

Condor has until March 8 to hold the meeting.