(Alliance News) - Ormonde Mining PLC on Wednesday said it will become a cash shell, following the completion of the sale of its interest in the La Zarza Copper-Gold project for EUR2.3 million.
La Zarza is a copper, gold and zinc mine located in Andalucia, Spain. The Dublin-based mineral resource company currently manages two other mining exploration projects in the Salamanca and Zamora provinces.
Following completion of the La Zarza sale, Ormonde will be required to make an acquisition or undertake a reverse takeover within six months, if it does not its share will be suspended from AIM.
Chief Executive Brendan McMorrow said the sale of La Zarza assets would place Ormonde on "an even stronger financial footing from which to execute new opportunities".
"Ormonde has the financial resources to pursue transformative acquisition opportunities and to generate considerable shareholder value in the coming months and years. We are working assiduously to identify an optimal project for the company," he continued.
Separately, Ormonde announced it narrowed its interim loss.
In the six months ended 30 June, Ormonde narrowed its pretax loss to EUR363,000 from EUR630,000 a year prior. It recorded no revenue in the first half, unchanged from last year.
Significant reductions in leadership salaries helped to narrow the loss, including the elective non-payment of director fees during the period.
Ormonde did not declare an interim dividend.
Ormonde shares were trading 5.1% lower at 0.82 pence on Wednesday afternoon in London.
By Holly Beveridge; hollybeveridge@alliancenews.com
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