4 Apr 2011 07:00
04 April 2011
Ormonde Mining plc
("Ormonde" or "the Company")
Consolidation of 100% Interest in the Barruecopardo Tungsten Project
The Board of Ormonde is pleased to report that its wholly-owned subsidiary Saloro SLU ("Saloro") has acquired the 10% interest in the Barruecopardo Tungsten Project held by its joint venture partner SIEMCALSA (The Society of Mining Investigation and Exploitation of Castilla y León, SA), thereby consolidating a 100% interest in Barruecopardo. The acquisition also includes SIEMCALSA's 10% interest in the surrounding tungsten and gold exploration portfolio.
Main Points
·; Saloro has acquired SIEMCALSA's 10% interest in the Barruecopardo Tungsten Project and surrounding tungsten and gold exploration ground Saloro has thereby consolidated a 100% interest in Barruecopardo.
·; The cash consideration is payable in several staged amounts, €0.1 million payable on signing, €0.9 million payable in two tranches over the next 18 months, with the balance of €1.8 million payable in 3 tranches out of the first three years production from a mining operation at Barruecopardo making a total of €2.8 million.
·; SIEMCALSA will continue to work on a consultancy basis with Saloro as the Project develops.
Kerr Anderson, Ormonde's Managing Director, said:
"We are delighted to have consolidated a 100% interest in Barruecopardo at a time when we are progressing towards tungsten production in late 2012. The Company has appreciated greatly working with SIEMCALSA, as its partner since 2005, to bring the project to its current stage. I look forward to their continued involvement on a consultancy basis into the future.
Having a 100% interest will also provide the Company with flexibility in discussions with relevant parties with regards to options for funding of the capital development stage of this strategic tungsten asset".
Permit Details
Saloro is acquiring SIEMCALSA's 10% interest in the Saloro-SIEMCALSA Joint Venture pertaining to six Investigation Permits covering a total area of 272 square kilometres in the Salamanca Province of Spain which include the Barruecopardo Tungsten Project.
For more information please visit www.ormondemining.com.
Enquiries to:
Ormonde Mining plc
Kerr Anderson, Managing Director Tel: +353 (0)46 9073623
Bankside Consultants
Simon Rothschild / Louise Mason Tel: +44 (0)20 7367 8888 Mob: +44 (0)7703 167065
Davy (Nomad / ESM Adviser)
Fergal Meegan / Roland French Tel: +353 (0)1 6796363
Fairfax I.S. PLC (Joint Broker)
Ewan Leggat / Katy Birkin Tel: +44 (0)207 598 5368
ENDS
About Ormonde
Ormonde Mining Plc is quoted on the AIM in London & the ESM in Dublin. Ormonde is a mineral development and exploration company focused on Spain (Ticker ORM).
Ormonde's key activities include:
The Barruecopardo Tungsten Project - Ormonde is developing a low cost mining operation at Barruecopardo to initially produce ~8% of non-Chinese global mine production from 2012.
The La Zarza Copper-Gold Project - Joint Venture with Antofagasta Minerals - a large "massive sulphide" deposit with significant copper, gold and zinc resources; exploration for an enlargement to the copper resource is being funded by Antofagasta.
Gold Explorationin several highly prospective areas of western Spain.