Ormonde Mining PLC - Placing Raising
("Ormonde" or "the Company")
Placing raising Stg£2 Million (
The Placing is comprised of two tranches:
Tranche 1 (raising approximately Stg£0.8 million) is in respect of 19,651,260 New Ordinary Shares representing approximately 4.7% of the existing issued share capital of the Company ("Tranche 1"). The New Ordinary Shares to be issued under Tranche 1 are within the existing share capital and allotment authorities of the Company and within the available headroom in respect of which pre-emption rights have been dis-applied. Accordingly Tranche 1 is scheduled to complete on
Tranche 2 (raising approximately Stg£1.2 million) is in respect of 30,348,740 New Ordinary Shares representing approximately 7.2% of the existing issued share capital of the Company ("Tranche 2") and 6.9% of the issued share capital of the Company as enlarged by Tranche 1. The completion of Tranche 2 is conditional upon shareholder approval of a proposed dis-application of pre-emption rights at an extraordinary general meeting of the Company which will be convened over the coming days. Completion of Tranche 2 is therefore expected to occur on or around
Background to and Reasons for the Placing
In recent years the focus of the Group has been on its 100% owned flagship
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. Swedbank have recently been appointed in respect of a proposed bond financing whereby
The purpose of the Placing is to enable the Company to advance the process of putting in place the senior bond and to advance the engineering design work enabling placement of key equipment orders without delay following completion of project financing. Completion of Tranche 2 of the Placing will facilitate the establishment of the environmental bond shortly after receipt of the Mining Concession and the discharge of a number of payments/fees in respect of land rental and related agreements. In addition, the proceeds of the Placing are required for working capital purposes.
Commenting on the Placing,
"We are very pleased with the interest in and ongoing support for the Company and would like to welcome some new institutional shareholders to our register. The funds generated through this placing will provide Ormonde with the resources required to move forward on both financing and design work required to commence development of our flagship
Having recently signed a tungsten supply agreement with Noble, which at current tungsten prices would be expected to generate revenues in excess of
Following the completion of Tranche 1 and Tranche 2 of the Placing, the Company will have 440,588,084 and 470,936,824 ordinary shares in issue respectively.
Application has been made for the New Ordinary Shares comprised in Tranche 1 to be admitted to trading on the AIM market of the
The New Ordinary Shares to be issued under the Placing, when issued and fully paid, will be identical to, and rank pari passu with, the existing Ordinary Shares for all dividends or other distributions declared, made or paid after Admission.
Davy (Nomad / ESM Adviser)
Eugenée Mulhern /
A glossary explaining technical terms contained in this announcement can be found at www.ormondemining.com/en/investors/technical_glossary.
For more information please visit www.ormondemining.com or follow Ormonde on Twitter https://twitter.com/ormondemining or Linkedin http://www.linkedin.com/company/ormonde-mining-plc
Ormonde's key activities include:
Barruecopardo Tungsten - Ormonde is developing a low cost mining operation at Barruecopardo to become a major, secure European supply of tungsten. Following the completion of a Definitive Feasibility Study and submission of permitting documentation in 2012, the Environmental Permit for the Project was received in early 2014, followed shortly thereafter by the signing of a 5 year offtake agreement with
Gold Projects in several highly prospective areas of western Spain which includes its joint venture agreement with Aurum Mining plc (AIM: AUR).
This information is provided by RNS
Quick facts: Ormonde Mining PLC
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