Barruecopardo Permitting

RNS Number : 5219I

Ormonde Mining PLC

26 July 2012

 

26 July 2012

Ormonde Mining plc

("Ormonde" or "the Company")

Final Documentation Submitted for a Mining Concession at the Barruecopardo Tungsten Project

The Board of Ormonde is pleased to report that its wholly-owned Spanish subsidiary, Saloro SLU ("Saloro"), has now submitted to the relevant mining authorities the final stage documentation supporting their application for a Mining Concession at the Barruecopardo Tungsten Mine in Salamanca, western Spain. This documentation represents the commencement of the final stage of the mine permitting process.

Kerr Anderson, Ormonde's Managing Director, said:

"The submission of the final stage documentation in relation to our application for a Mining Concession for Barruecopardo is a major milestone for the Company as it takes the Project closer to tungsten production. This documentation, prepared following detailed consideration of all guidance and advice provided by the relevant regulatory and other bodies, will be reviewed by the administrative authorities.  The Company is confident that its submission complies with all the guidelines and regulations applicable for a new mining operation at Barruecopardo.

We continue to be encouraged by the strong local and regional support for the Project, the commencement of which will deliver some 105 direct jobs at the mining operation and provide many economic and social benefits to the local community and surrounding Salamanca area."

Detail

In January 2011, the Company submitted the initial permitting documentation, termed a "Documento Inicial", as required under Spanish Law, for the proposed operation at Barruecopardo. Prompt responses to the Documento Inicial by the regulatory authorities in Castilla y Leon and other interested parties provided valuable guidance which the Company has incorporated into many of the studies subsequently completed on the Project.  In the period since receipt of this response there has been significant dialogue with the various regulatory bodies to ensure that the final submission addresses all aspects covered in their initial responses. The Company is confident that the final documentation submitted complies with all guidelines and regulations applicable to enable commencement of a mining operation at Barruecopardo.

Saloro has also recently signed a Collaboration Agreement with the Barruecopardo Town Council, under which Saloro has committed to pay to the Town Council €100,000 per year for each year in which the Project is in operation, by way of municipal rates and taxes. Saloro has also committed to bring forward some of the said payments to the Council with a total of €270,000 being paid in three staged payments in the period between the signing of this agreement and the commencement of production activities at the site. The first of these advance payments has already been made.  For its part, the Town Council will, within its capabilities, provide Saloro with all assistance and support to facilitate the appropriate development of the Barruecopardo mine. 

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

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]

Fairfax I.S. PLC (Joint Broker)

Ewan Leggat / Katy Birkin  Tel: [phone]

ENDS

About Ormonde

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

Ormonde's key activities include:

The Barruecopardo Tungsten Project - Ormonde is developing a low cost mining operation at Barruecopardo to become a major, secure European supply of tungsten.

The La Zarza Copper Project- a large "massive sulphide" deposit; exploration for an enlargement to the current copper resources is being funded through a joint venture Antofagasta Minerals.

Gold Explorationin several highly prospective areas of western Spain.

 

END

 

 

MSCBKPDDABKDKOB