RE: For anyone not sure2 Feb 2021 12:53
With reference to the deal:
Ormonde looks to acquire African high grade copper projects
Ormonde notes recent increased trading and volume in the Company's shares together with volatility in the Company's share price and is pleased to provide an update and further information on its previously announced potential acquisition.
On 16 September 2020, the Company announced that it had entered into an exclusivity agreement in relation to this potential acquisition, and since that time the Company has been advancing negotiations, diligence and legal structuring of the transaction. Very significant progress has been made in these areas. However, progress to completion has been slowed somewhat resulting from the impact of the pandemic and ongoing discussions with the Company's largest shareholder.
On completion of this transaction, which remains subject to the finalisation of certain terms, conditions and legal agreements, Ormonde will acquire, or have the rights to acquire up to an 80% interest in two exploitation licenses ("Licenses") covering multiple high grade copper and polymetallic development and exploration projects in a highly prospective and underexplored district in the Republic of the Congo ("ROC", also known as Congo-Brazzaville).
The Licenses include:
· a copper-lead-zinc deposit that has been, until recently, subject to small-scale underground mining:
o recovering direct shipping ore ("DSO") grade material (previous operator DSO grades of 6% copper, 23% lead and 25% zinc reported - see Note 1);
o public domain drilling results including 11.9% copper, 29.6% lead, 19.4% zinc and 159.2 g/t silver from 8.55 metres downhole depth (see Note 2);
· a copper-silver deposit with mineralisation over a 1.2 kilometre strike length with significant high grade resource potential indicated by previous operator work including a public domain JORC (Note 4) Exploration Target of 15 to 20 million tonnes grading 3% to 5% copper (see Note 1); and
· several other recognised historical mine sites or exploration prospect areas providing an exciting project pipeline across this underexplored land package, which has to date seen very limited effective modern-day exploration (see Note 3).
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