29 Jan 2014 11:00
29 January 2014
Ormonde Mining plc
("Ormonde" or "the Company")
Appointment of Swedbank as Bond Advisors for Barruecopardo
The Board of Ormonde is very pleased to advise that it has appointed Swedbank Norway ("Swedbank") as Advisors in relation to the contemplated senior bond financing of approximately €50 million for its Barruecopardo Tungsten Project, located in western Spain.
Ormonde will work closely with Swedbank over the coming period with regards to the financing of Barruecopardo.
In addition to the capital costs for Barruecopardo of €48.5M, the total upfront fundable cost is expected to include value added tax on CAPEX, (approx. €9M, which is refundable), the project company Saloro SLU's working capital requirement for the construction and initial production periods, and interest on debt during construction. The final gross fundable cost will be defined following agreement of offtake and financing terms, and is estimated to be in the region of €70M. As previously advised, Ormonde intends to finance Barruecopardo through a combination of debt, an equity component (whether by way of joint venture or otherwise) and off-take contracts.
Kerr Anderson, Ormonde's Managing Director, commented:
"As we now move towards completion of the permitting process for our Barruecopardo Tungsten Project following recent advances, it is an appropriate time to formalise our relationship with Swedbank whom we have been in discussions with over the past year. Ormonde is therefore very pleased to appoint Swedbank as Advisors in relation to the contemplated €50 million senior bond financing of our world class tungsten project in Spain. We look forward to working with Swedbank over the coming period as we finalise these plans."
Information about Swedbank is available at www.swedbank.com
Enquiries to:
Ormonde Mining plc
Kerr Anderson, Managing Director Tel: +353 (0)1 8253570
Bankside Consultants
Simon Rothschild Tel: +44 (0)20 7367 8888 Mob: +44 (0)7703 167065
Murray Consultants
Ed Micheau Tel: +353 (0)1 4980300 Mob: +353 (0)86 803 7155
Davy (Nomad / ESM Adviser)
Eugenée Mulhern / Roland French Tel: +353 (0)1 6796363
A glossary explaining technical terms contained in this announcement can be found at www.ormondemining.com/en/investors/technical_glossary.
For more information please visit www.ormondemining.com or follow Ormonde on Twitter https://twitter.com/ormondemining or Linkedin http://www.linkedin.com/company/ormonde-mining-plc
ENDS
About Ormonde
Ormonde Mining Plc is admitted to trading on the AIM market in London and the ESM market in Dublin. Ormonde is a mineral development and exploration company focused on Spain (Ticker: ORM).
Ormonde's key activities include:
Barruecopardo Tungsten- Ormonde is developing a low cost mining operation at Barruecopardo to become a major, secure European supply of tungsten.
Gold Exploration in several highly prospective areas of western Spain which includes its joint venture agreement with Aurum Mining plc (AIM: AUR), where Ormonde currently has a 40% interest in the Pino de Oro project in the Zamora Province and a 46% interest in the Peralonso and Cabeza projects in Salamanca Province of western Spain. Ormonde is Manager of the Joint Venture.
La Zarza Copper - polymetallic massive sulphide deposit in the prolific Iberian Pyrite Belt of southern Spain.