(Alliance News) - Ormonde Mining PLC on Thursday said its annual general meeting has been further adjourned as talks about a "potential transaction" continue with its largest shareholder.
Shares in the Spain-focused natural resources firm dropped 30% in London in morning trading at 2.10 pence.
Voting on resolutions 6 to 8, pertaining to the deal, was previously scheduled for December 17 before being adjourned to Thursday. It has again been adjourned, this time to February 18.
The delay will "facilitate the company continuing discussions with its largest shareholder in relation to these resolutions as they pertain to a potential transaction", Ormonde said.
The company said it will keep the market appraised in coming weeks as it continues work to conclude terms of what it sees as "an extremely value enhancing opportunity".
"While negotiations, diligence and legal structuring of a potential transaction are well advanced, progress to completion has been slower than hoped for reflecting limitations resulting from the ongoing pandemic. There can be no certainty that a deal will be concluded," said Ormonde.
The adjournment also aligns with Ormonde's requirement to hold an extraordinary general meeting to consider resolutions relating to its migration from the UK-based CREST Central Securities Depositary to Euroclear Bank of Belgium for electronic settlement of trading in its shares.
The migration is due to Brexit and is required of all Irish-listed companies with shares held and settled in CREST. It is set to take place in March.
Ormonde highlighted the importance of approving this migration.
"It is crucial to the interests of shareholders that the company gets over one third of all issued shares voted at the EGM, as is the current legal requirement, with a majority of those votes being in favour of the resolutions. Failure to achieve this vote level would mean that Ormonde's shares currently held through CREST would need to be rematerialised into paper certificates, and, most critically, Ormonde would be at risk of losing its trading facilities on the Euronext Growth and AIM markets," the company said.
By Anna Farley; annafarley@alliancenews.com
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