Ormonde Mining PLC - Placing Raising

 

4 April, 2014

Ormonde Mining plc

("Ormonde" or "the Company")

 

Placing raising Stg£2 Million (€2.4 Million)

 

 

DUBLIN & LONDON: 4 April, 2014 - Ormonde Mining plc announces that it has procured placing commitments in respect of in aggregate 50,000,000 new ordinary shares of nominal value €0.025 each in the capital of the Company ("New Ordinary Shares") at an issue price of Stg4p per share (the "Placing") and raising in aggregate Stg£2 million (approximately €2.4 million) (before expenses). Davy and SP Angel acted for the Company in respect of the Placing.

 

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 11 April, 2014; and

 

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 6 May, 2014.

 

Background to and Reasons for the Placing

In recent years the focus of the Group has been on its 100% owned flagship Barruecopardo Tungsten Project in Salamanca, western Spain, and in particular on advancing the important mine permitting process with the provincial and regional governments. At the end of January 2014, the Environmental Impact Declaration (EID) for the Project was received from the Regional Environmental Department in Castilla y Leon. The next and final stage in the permitting process is the receipt of the Mining Concession and the Company now anticipates that the Mining Concession will be available to Saloro in the coming weeks, following  which an environmental bond will be required to be put in place.

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 €50 million is planned to be raised by way of a senior bond. Fairport Engineering have also been appointed to commence the engineering design work on the Project, while on 21 March, 2014 the Company entered into an offtake agreement whereby Noble Resources International Pte. Limited ("Noble"), a wholly owned subsidiary of Noble Group, has committed to purchase 100% of the tungsten concentrates produced from the Barruecopardo open pit mine during its initial five years of operation.

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, Kerr Anderson, Managing Director, said:

 

"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 Barruecopardo Tungsten Project.

 

Having recently signed a tungsten supply agreement with Noble, which at current tungsten prices would be expected to generate revenues in excess of $350M over the agreement's initial 5 year term, and with the Mining Concession anticipated shortly, we are entering a very exciting time for the Company."

 

 

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 London Stock Exchange and the ESM market of the Irish Stock Exchange and will be made for the New Ordinary Shares comprised in Tranche 2 to be admitted to trading on the AIM market of the London Stock Exchange and the ESM market of the Irish Stock Exchange.  It is expected that Tranche 1 of the Placing will complete and dealings in the New Ordinary Shares the subject of Tranche 1 will commence on 11 April, 2014. It is expected that Tranche 2 of the Placing will complete (assuming its conditions have been satisfied) and dealings in the New Ordinary Shares the subject of Tranche 2 will commence on 6 May, 2014.

 

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.

 

Enquiries to:

 

Ormonde Mining plc

Kerr Anderson, Managing Director  Tel: +353 (0)1 8253570

 

Bankside Consultants

Simon Rothschild  Tel: +44 (0)20 7367 8888   Mob: +44 (0)7703 167065

 

Murray Consultants

Mark Brennock  Tel: +353 (0)1 4980300  Mob: +353 (0)87 2335923

 

Davy (Nomad / ESM Adviser)

Eugenée Mulhern / Roland French  Tel: +353 (0)1 6796363

 

SP Angel Corporate Finance LLP (Joint Broker)

Ewan Leggat / Katy Birkin  Tel: +44 (0)20 3463 2260

 

 

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

 

ENDS

 

About Ormonde

Ormonde Mining Plc is admitted to trading on the AIM market in London and the ESM market in Dublin. Ormonde is a mineral development and exploration company focused on Spain (Ticker: ORM).

 

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 Noble Resources International Pte. Limited, a wholly owned subsidiary of Noble Group, where Noble have committed to purchase 100% of the tungsten produced at the Project during its initial five years of operation.

 

Gold Projects in several highly prospective areas of western Spain which includes its joint venture agreement with Aurum Mining plc (AIM: AUR).

 

La Zarza Copper - polymetallic massive sulphide deposit in the prolific Iberian Pyrite Belt of southern Spain.