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Ormonde Mining sees signficant progress in funding talks for Spanish tungsten mine

Last updated: 17:27 22 Nov 2012 AEDT, First published: 18:27 22 Nov 2012 AEDT

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Ormonde Mining (LON:ORM) says significant progress has been made over funding for its Barruecopardo tungsten project in Spain with the permitting process also going well.

Debt funding talks have now reached the term sheets stage with a number of financial institutions.

From this, Ormonde said it will select the preferred debt funding option for the project.

In addition, negotiations are also ongoing with potential joint venture parties but no off-take agreement will be agreed until full full funding has been finalised.

On permitting, Ormonde’s subsidiary Saloro has presented its plans to community groups and local public bodies following the submission of final permitting documents in July. A land acqusition programme is being carried out in conjunction with the permitting process.

Saloro itself is being restructured into a company with a board of directors, which will include a new president who is being sought.

Ormonde added its timetable remains for plant commissioning in the final quarter of next year, 2013, though this depends on the securing of project financing, the granting of the mining concession and the agreed acquisition of the outstanding land plots.

Kerr Anderson, Ormonde's managing director, said: "We have been focusing our efforts on communicating our proposals for the Barruecopardo tungsten project at both local and provincial levels whilst the permitting documentation is processed by the relevant government departments.

"In parallel, the robust economics of the project provides the company with good optionality, and we have made significant progress in relation to capital funding, having now received indicative offers from potential joint venture partners, and with debt funding activities proceeding to term sheet stage with a number of financial institutions."

A definitive feasibility study published earlier this year put Barruecopardo’s mine life at nine years with maximum annual mine production of 1.1 million tonnes per annum to produce an averaged 227,000 metric tonnes per annum.

 

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