(Alliance News) - Ormonde Mining PLC on Monday said Chair Michael Donoghue will step down after the company's proposed sale of its 30% interest in a Tungsten mine is completed.
He will be replaced by Non-Executive Director Jonathan Henry who will assume the role of executive chair.
Earlier in January, the firm said it had struck an agreement to sell its 30% stake in a Tungsten mine in Salamanca, northwestern Spain, to American asset manager Oaktree Capital Management for EUR6 million.
The disposal needs the permission of shareholders, which Ormonde will look to secure at a general meeting on February 13.
Like Donoghue, Non-Executive Director John Carroll will also step down, "as soon as practicable following the completion of the proposed disposal".
Ormonde said: "The process to identify and select new non-executive directors to replace these outgoing directors is already well advanced. The board intends to announce any nominated new directors ahead of the extraordinary general meeting."
Earlier this month Ireland-based Ormonde said revenue at the Barruecopardo mine had been "substantially lower" than forecasts from a 2012 feasibility study. The asset is operated by Spanish mining firm Saloro SLU, which Ormonde has a 30% interest in.
Mining costs have also risen, Ormonde said, and the company has previously been forced to pursue debt financing agreements to cope with rising expenses at Barruecopardo.
Chair Donoghue said earlier in January: "While the disposal of Ormonde's interest in the Barruecopardo mine will be a disappointment for many shareholders, the mine has encountered significant setbacks during its ramp-up operations, initially resulting in an additional EUR10 million funding requirement, addressed through an additional loan facility as announced in October 2019, and most recently a further funding requirement estimated by the company to be in the region of EUR12 million to EUR15 million."
Shares in the company closed 9.4% lower at 0.72 pence each in London on Monday.
By Eric Cunha; ericcunha@alliancenews.com
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