Appointment of Bond Advisors

RNS Number : 7788Y

Ormonde Mining PLC

29 January 2014

 



29 January 2014

Ormonde Mining plc

("Ormonde" or "the Company")

Appointment of Swedbank as Bond Advisors for Barruecopardo

The Board of Ormonde is very pleased to advise that it has appointed Swedbank Norway ("Swedbank") as Advisors in relation to the contemplated senior bond financing of approximately €50 million for its Barruecopardo Tungsten Project, located in western Spain.

Ormonde will work closely with Swedbank over the coming period with regards to the financing of Barruecopardo.

In addition to the capital costs for Barruecopardo of €48.5M, the total upfront fundable cost is expected to include value added tax on CAPEX, (approx. €9M, which is refundable), the project company Saloro SLU's working capital requirement for the construction and initial production periods, and interest on debt during construction.  The final gross fundable cost will be defined following agreement of offtake and financing terms, and is estimated to be in the region of €70M. As previously advised, Ormonde intends to finance Barruecopardo through a combination of debt, an equity component (whether by way of joint venture or otherwise) and off-take contracts.

Kerr Anderson, Ormonde's Managing Director, commented:

"As we now move towards completion of the permitting process for our Barruecopardo Tungsten Project following recent advances, it is an appropriate time to formalise our relationship with Swedbank whom we have been in discussions with over the past year. Ormonde is therefore very pleased to appoint Swedbank as Advisors in relation to the contemplated €50 million senior bond financing of our world class tungsten project in Spain. We look forward to working with Swedbank over the coming period as we finalise these plans."

Information about Swedbank is available at www.swedbank.com

Enquiries to:

Ormonde Mining plc

Kerr Anderson, Managing Director  Tel: [phone]

Bankside Consultants

Simon Rothschild  Tel: [phone]   Mob: [phone]

Murray Consultants

Ed Micheau  Tel: [phone]  Mob: [phone]

Davy (Nomad / ESM Adviser)

Eugenée Mulhern / Roland French  Tel: [phone]

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.

Gold Exploration in several highly prospective areas of western Spain which includes its joint venture agreement with Aurum Mining plc (AIM: AUR), where Ormonde currently has a 40% interest in the Pino de Oro project in the Zamora Province and a 46% interest in the Peralonso and Cabeza projects in Salamanca Province of western Spain.  Ormonde is Manager of the Joint Venture.

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

 

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