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Ormonde Mining (LON:ORM) is hopeful the mining concession for its Barruecopardo tungsten project in Spain is imminent.
A late stage review of historic concessions at the site for the tungsten mine meant the award was delayed, but Ormonde understands this has now been completed, which should ensure the granting of the mining permit.
Ormonde has already received all of the enivironmental approvals and has now drawn up a shortlist of engineering constractors.
Progress had also been made on finance for the project, which will be a mixture of debt and equity and is being helped by the continued resilience of the tungsten price, it said.
Michael Donoghue, Ormonde's chairman added: "We have made very significant progress at our Barruecopardo project during the first half of 2014, including the receipt of the environmental permit, the engagement of Swedbank as debt advisors in relation to the financing package for the project and the agreement of a five year offtake contract, with Noble Group, for the tungsten concentrate to be produced. We look forward to the issuing of the mining concession."
Losses for the half year to June were £1.11mln (£943,000). Cash at the half year was £1.56mln.
Broker Sanlam added that the tungsten price is relatively firm (currently $355/ metric tonne unit, 10kg) and assuming the mining licence is granted soon, Ormonde will progress with mine development in 2015.
"At $350/mtu, payback is modelled to be 2 years. Capex is €48.5mln and will be through debt and equity - with a fund raise approaching, it is difficult to predict the direction of the share price once the mining licence is granted.
"Longer term it is an attractive project in a safe jurisdiction and should be good for shareholders so long as Ormonde maintains ownership or negotiates attractive terms should funding be at the project level."
Shares rose 3% to 4.63p.