http://www.lse.co.uk/share-regulatory-news.asp?shareprice=ORM&ArticleCode=prqlt1ql&ArticleHeadline=Form_83__Ormonde_Mining_Plc The 339,990,986 trade is for exactly the number of shares that Tiberius held (as at 30 April) as notified on 6 May, they also sold a few recently so IMO it has to be extremelly likely that it was them having exited - unless they doubled up buying exactly the same number of shares again from say M&G but that has to be less likely. Pure speculation on my part as to any involvement of Almonty on the other end of the trade, could be another ii etc. If it is Tiberius exiting, it is perhaps unlikely that a Holdings RNS will be published before the EGM (based on the delay in their previous reporting of holdings). I wouldn't want to see Oaktree snaffle this too cheaply. Agree it could get interesting next week. GLA
It was Tiberius selling out their holding, shares sold matched their holding. Have Almonty picked them up? http://www.irishtimes.com/business/energy-and-resources/it-s-ormonde-versus-almonty-in-battle-over-tungsten-mine-1.2209981 http://www.irishtimes.com/business/energy-and-resources/almonty-chief-says-funds-in-place-for-27m-bid-1.2209999
Tiberius had about that many I believe, so it maybe them? Holdings RNS's should clarify. Maybe Granto can tie down that loose end? Almonty picking them up??
Very big trade just gone through of 33.99m @ 2.3p
Ormonde Mining* (ORM LN) 2.95 pence, Mkt Cap £13.94m – Offer on Funding from Oaktree and Non-binding takeover bid from Almonty Corporate  The company have confirmed the terms of the offer from Oaktree Capital to fund development of the Barruecopardo tungsten project.  The offer will be subject to shareholder approval at an EGM on the 19th May  The Oaktree offer is for a total of US$99.7m or €90.4m in the form of debt and equity.  This offer will be subject to an EGM to take place on the 19th May.  €40.1m (US$44.2m) will in the form of equity at the project level giving Oaktree 65% ownership of the project.  €50.3m (US$55.5m) is in debt, the provision of which gives them a further 5% of the project.  Debt is for a 5 year term and carries an interest rate of 12%.  Debt will be drawn down after equity has been invested to start detailed engineering work ahead of project construction with commissioning targeted for Q4 2016.  Funding provides for €3.5m of work to be done on exploration to extend the resource with potential for mine life extension through underground mining.  Start up capital for the first stage estimated at €70-75m  Shareholder agreement to be in place on JV to protect minority interest.  Ormonde will receive an annual management fee of €1m.  The Almonty Offer is non-binding with an initial proposal made in March of 4.25 with a maximum cash consideration of 50% valuing the company at £20.08m.  Almonty has subsequently made a second offer which is also indicative and non-binding of 4 pence all in cash valuing the company at £18.9m.  The board of Ormonde are not recommending the latter as they believe the Almonty lacks credibility as a bidder.  Los Santos, Almonty’s main asset is said to have a reduced mine life to 2 years from 8 years if tailings are excluded from reserve estimates.  An Ni-43 101 reserve as of 30 June 2013 is for 1.88 Mt at 0.39% WO3 with a measured and indicated resource of 2.76 Mt at 0.32% WO3 .  Los Santos was acquired by Almonty in September 2011 and produces around 70,000mtu of tungsten concentrate.  Cash at Almonty Industries at the end of 31 Dec 2014 stood at C$9.441m with an additional C$1.23m of restricted cash.  Almonty Industries also has long term debt of C$19.2m and convertible debt of C$7.3m. *SP Angel act as joint broker to Ormonde Mining SP Angel will be producing an updated corporate note on ORM shortly
Will the WLFE raise its head? or a n other now that terms of Oaktree and Almonty deals are known along with timescale of the EGM to approve (or otherwise) the Oaktree deal. http://tungsteninvestingnews.com/5811-ormonde-mining-almonty-industries-takeover-barruecopardo.html?pmc=E-1&MyID=ianpauldavis@hotmail.com&utm_source=Resource+Investing+News&utm_campaign=eb014db5fb-RSS_EMAIL_CAMPAIGN&utm_medium=email&utm_term=0_f83d87db0f-eb014db5fb-248896385
Kerr Anderson, Ormonde’s managing director, urged shareholders to back the finance proposal at a meeting on 19 May. "The US$99.7mln project financing, committed by Oaktree, provides funding certainty and enables the development of Barruecopardo in the short term.” It was a good package in the current tough market for junior miners, he added, as projects are hard to finance. “To bring in €100mln and retain a substantial minority with various dilution protections built-in is a very good deal,” he told Proactive. Oaktree will have a majority of members on the board at Barruecopardo, but key decision making will be made jointly, he said, and Ormonde will manage the project at the operating level. A mining concession has already been granted and subject to Oaktree’s plan being approved, production is scheduled to begin in late 2016. The two companies may also co-operate on other tungsten projects, he said. Anderson added Ormonde is being shielded from the recent dip in the tungsten price by the weakness of the euro against the dollar, but he insisted fundamentals overall remained strong. “There is not a supply glut coming along. The supply/demand dynamic is favourable and we remain as bullish as previously.” US firm Oaktree is also a sophisticated investor that has done homework on the metal, he said. Why didn't the BoD stick to the plan to secure main mine (phase 1) funds only? and use production profits to fund any phase 2 underground development (to reduce the need for expensive development capital) Maybe they weren't wearing the 'shouting trousers'. One downside of the deal IMO is that ORM seem to have saddled themselves with a lot of debt that will eat into future profits by going with this bigger up front deal. Basically adds to risk rather than reducing it IMO. The 'monitoring fee' makes a nonsense of the 'management fee' IMO. It also looks like the management fee is funded out of the JV's profits rather than separately by Oaktree? Unless I misread that/ stand to be corrected. A great deal with little risk for Oaktree (they are experts in financial risk management after all). However, it does secure future production for ORM JV by end of 2016 assuming the proposal is supported at the EGM. ORM seem to have done a comprehensive job of poohpoohing Almonty's approach. Be interesting to see how it develops from here. An Oaktree done deal I suspect if the likes of Tiberius and the other ii's are happy with it. Keep an eye out for large trades. BoD themselves hold few voting shares and looks like PIs are a bit reluctant to trade in/ out at present. Inspect your own onions and GLA.
More of the detail on the terms of the Oaktree deal, here: http://ormondemining.com/uf/Ormonde%20EGM%20Circular_28042015_Final.pdf
Still waiting to see whether the WLFE will have a look in here or indeed at WRES? What's the score Almonty? Offer or no offer? Meanwhile, picked up this tidbit from Oaktree's Chairman in a news snippit: Oaktree could be on the verge of ramping up its investment activity. “For the last 3.5 years, Oaktree’s mantra has been ‘move forward, but with caution,’” Mr. Marks said. “For the first time in that span, with the arrival of some disarray and heightened risk aversion, events tell us it’s appropriate to drop some of our caution and substitute a degree of aggressiveness.” GLA
The spice here is likely to come from what other offers may come forward over the next period. Almonty are opportunistic and unlikely to be offering top dollar, neither is US private equity (by reputation). It is possible that Almonty stepping forward has improved terms from Oaktree and hence caused negotiations to run on but the issue I have with that is ORM's RNS so far have been entirely dismissive of Almonty's approaches. Now if Lundin or another decent sized player threw their hat in the ring I could see the SP zooming off North in quick time re expectation of a fair value deal. In absence of that, I guess the next RNS will either be a) response to Almonty (and therefore as a minimum bring about some visibility for shareholders as to the relative attractiveness of their approach vs Oaktree's). b) agreement with Oaktree Also distinctly possible ORM are using today's RNS to get an improved offer from Almonty or a n other Just thinking out loud. itsonelouder
Ormonde Mining* (LON:ORM) 3.075 pence, Mkt Cap £14.5m – Update on Project Financing • The funding discussions with Oaktree Capital are said to have made significant progress during the exclusive period. • The exclusive period was between 18 February and the 10th April 2015. • The advancement of the project financing including drafting of long form documentation and signing of binding agreements. • Agreements are expected to be finalised shortly. Conclusion: We look forward to hearing more about the specific terms of the agreement with Oaktree Capital which is expected to be a combination of debt at the company level and a majority equity stake to Oaktree Capital at the project level. No offer terms have been seen from Almonty Industries following their approach on the 11th March. Neither transaction offers much visibility to shareholders currently. *SP Angel acts as joint broker to Ormonde Mining
Gives no formal extension to the exclusivity period with Oaktree so assume that that is no longer active? Also note no comment on Almonty's approach yet, although the RNS language continues to have a 'done deal' with Oaktree feel about it IMO. GLA
maybe the BoD have a hangover from the deal signing party and haven't got around to it yet, or maybe there'll be an extension RNS out later today? If there is any serious consideration of Almonty's proposal this time I suppose things could rumble on a little longer. GLA
Couple of mill sneaked in before the bell, possibly a rollover.
Almost a month worth of trades viewable on the trades tab. Would have expected more interest the day before potential financing news for Barrecuepardo? Maybe every one has been riding the Horse over the Hill today...
I still think the BoD are going to rebuff Almonty's approach based on history and the language used in the Almonty approach RNS. It seems to me the Oaktree offer was pretty much 'a done deal' the BoD are happy with. The upfront loan conditions seemed to me to be pointing to the done deal nature of the transaction going ahead with Oaktree. The BoD and advisors have clearly spent a significant length of time and effort trying to find the right financing package and Oaktree have done their due diligence and have big bucks cash at hand. Just my opinion GLA
Share price here seems to be glued to 3p area prior to finding out more on the Oaktree deal tomorrow. PD :)) GLA
Had a response from Mr Carroll to an email asking about the article and also status of the Noble offtake agreement in relation to Oaktree's proposed deal and what level of shareholder sign off would be required in the context of the Oaktree 'majority position' aspect of the deal: It looks more than likely to me that Almonty is going to be rebuffed and the BoD will be pushing shareholders to go with the Oaktree deal (just my opinion based on the response). Mr Carroll's comments below: 'We have seen the article and I think the text at the beginning of the article is quite clear as to Ormonde’s knowledge of any approach ahead of being notified': “A spokesman for Ormonde said the company was unaware of the approach from Canadian miner Almonty until around 9.30pm on March 10 - hours after the stock exchange was closed for the day. 'A press release filed by Almonty appeared on Sedar, the system used for filing securities-related information with the Canadian authorities, at 5.26pm Eastern Time (9.26pm Irish time) on March 10'. With regard to your query on the Noble offtake, 'this is a confidential contract (as is standard with such offtake agreements) and therefore I am not in a position to comment with regards to it'. On Oaktree, 'the transaction is being progressed and the Company is liaising with its advisors and the appropriate regulators on matters of shareholder approval on any agreed transaction'. 10 April not far off now, obviously that date may get extended or may hear more on Almonty's approach before then.
Edison note this week suggests a 75% dilution of Barrecuepardo project if Oaktree's offer is based on market cap (as opposed to NAV). Although I can't see how they have worked that out. Not a million miles from your workings though Granto. They see value in a tie up with Almonty and make some comments on their financial position which may be of interest. http://www.edisoninvestmentresearch.com/serve_pdf.php?d=sectorreports&f=tungstensectorupdate230315.pdf