Placing

RNS Number : 2510O

Ormonde Mining PLC

18 September 2013

 



18 September, 2013

Ormonde Mining plc

 ("Ormonde" or "the Company")

Placing raising Stg£1.07 Million (€1.27 Million)

DUBLIN & LONDON: 18 September, 2013 - Ormonde Mining plc announces that it has procured placing commitments in respect of 22,442,422 new ordinary shares of nominal value €0.025 each in the capital of the Company.  The Placing was conducted by Davy and SP Angel, with shares placed with new and existing institutional and private investors, at a price of Stg4.75p per share (the "Placing") raising in aggregate Stg£1.07 million (approximately €1.27 million) (before expenses).

The net proceeds from the Placing will enable Ormonde to commence the definitive engineering work required to allow for the placement of process plant priority equipment orders at Barruecopardo.  The balance of the net proceeds will be available for other preparatory activities including ongoing land rental payments under the land acquisition procedure, and for working capital.

The Company is continuing discussions in respect of the provision of project funding to the Barruecopardo project with active engagement and detailed due diligence in progress against the backdrop of the strong tungsten APT price (US$415/mtu relative to US$350/mtu used as the base case in the Barruecopardo definitive feasibility study) and the ongoing progression of the permitting process. As previously announced, the Review of Environmental Assessment has been completed by the provincial authorities with a draft declaration forwarded to the Regional Government, raising favourable related commentary in the Spanish media in July, 2013. Final permitting requires a positive definitive Declaration of Environmental Impact by the Regional Government and the subsequent granting of a Mining Concession by the Mining Authorities.

The four directors of Ormonde also participated in the Placing: Mike Donoghue in respect of 168,421 ordinary shares, Kerr Anderson in respect of 84,211 ordinary shares, John Carroll in respect of 63,158 ordinary shares and Steve Nicol in respect of 42,105 ordinary shares. Following completion of the Placing their respective interests in the enlarged issued share capital of the Company will be 3,595,233, 1,061,352, 2,184,251 and 192,105 ordinary shares, representing 0.85%, 0.25%, 0.52% and 0.05% respectively of the enlarged issued share capital of the Company.

Commenting on the Placing, Kerr Anderson, Managing Director, said:

""The successful completion of this placing will further support the Company in its active discussions with strategic and financial partners relating to the funding of our Barruecopardo Tungsten Project, which we hope to bring to fruition in the near future.  In addition, we have made considerable progress so far this year with regards to the permitting at Barruecopardo and we are confident that we are in the final stages of the process.  The tungsten price has been strong throughout much of the year to-date, and provides a strong backdrop to our progress." 

The number of new ordinary shares the subject of the Placing is within the existing share capital and allotment authorities of the Company and is within the available headroom in respect of which pre-emption rights have been dis-applied. Following the Placing, the Company will have 420,936,824 ordinary shares in issue. The new ordinary shares, which represent approximately 5.33% of the enlarged issued share capital, will on issue rank pari passu in all respects with the existing ordinary shares in the Company. Application has been made for the new ordinary shares to be admitted to trading on the AIM market of the London Stock Exchange and the ESM market of the Irish Stock Exchange and it is expected that the Placing will complete and dealings in the new ordinary shares will commence on 23 September, 2013.

The Company expects to issue its interim results in respect of the six months ended 30 June, 2013 on 30 September, 2013.

For more information please visit www.ormondemining.com.

For further information:

Ormonde Mining plc

Kerr Anderson, Managing Director  Tel: [phone]

Davy (Nomad / ESM Adviser)

Eugenée Mulhern / Roland French  Tel: [phone]

SP Angel Corporate Finance LLP (Joint Broker)

Ewan Leggat / Katy Birkin  Tel: [phone]

Bankside Consultants

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

Murray Consultants

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

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).

Forward Looking Statements

Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur.  Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. 

While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggestions herein.  Except as required by applicable law or regulation, Ormonde does not intend to update any forward-looking statements to conform these statements to actual results.

 

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