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Ormonde Mining raises £2mln to advance Barruecopardo

Published: 01:05 05 Apr 2014 AEDT

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Ormonde Mining (LON:ORM) has raised £2mln through a placing to further advance its flagship Barruecopardo tungsten project in Spain.

Funds will provide Ormonde with the wherewithall to advance both the financing and design work required to commence development at the site in Spain.

The firm is issuing 50mln shares at 4 pence each - representing around an 18% discount to Thursday's closing price of 4.875p.

At the end of January this year, the Environmental Impact Declaration (EID) was received from the regional authorities.

The next and final stage is getting a mining concession, which Ormonde, believes will be available in the "coming weeks".

"In parallel with efforts on permitting, the company has been progressing financing of Barruecopardo, as well as advancing engineering design work and other preparatory works," Ormonde said. 

"Swedbank have recently been appointed in respect of a proposed bond financing whereby €50 million is planned to be raised by way of a senior bond." 

Fairport Engineering has also been appointed to begin engineering design work on the project.

At the end of March, Ormonde agreed an offtake agreement for concentrates from the mine with Singapore-listed commodities group Noble.

The placing consists of two tranches - the first raising around £0.8mln and the second raising around £1.2mln.

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