22 Jun 2015 07:00
22 June 2015
Ormonde Mining plc
("Ormonde" or "the Company")
Barruecopardo - Closing of Oaktree Financing
The Board of Ormonde is very pleased to advise that Closing of the Oaktree Project Financing ("Oaktree Financing") relating to its flagship Barruecopardo Tungsten Project in Salamanca, Spain ("Barruecopardo" or the" Project"), was completed on 19 June 2015, and the initial USD 25 million of equity funds have been received from OCM Tungsten Holdings SARL in accordance with the terms of the Oaktree Financing. This follows Ormonde shareholder approval of the Oaktree Financing on 19 May 2015, and the subsequent completion of a number of mechanical restructuring steps required to implement the revised Group structure. In conjunction, with this access to funding, a number of relevant activities have been initiated to commence the implementation of the development schedule for Barruecopardo.
Main Points
· Completion on 19 June 2015 of all conditions relating to the Oaktree Financing (totalling USD 99.7 million), including the receipt by Saloro SLU (the company which is developing the Project) of the initial Oaktree equity contribution of USD 25 million.
· Activation of initial key activities, including the Stage 2 detailed engineering design works by Fairport Engineering, required to enable procurement of key equipment.
· Final negotiations of a Stage 3 construction management contract being completed.
· Commencement of an implementation and construction timeline with commissioning targeted for the end of 2016.
Kerr Anderson, Ormonde's Managing Director, commented:
"I am extremely pleased to report the Closing of the USD 99.7 million Oaktree Financing, and the receipt by the project company of the initial USD 25 million in equity funding. This follows Ormonde's shareholders' approving the financing in May and completion of required implementation steps in June. Activities that commence the Project's development timeline have now been initiated, with commissioning targeted by the end of 2016.
We look forward to keeping shareholders updated on development progress at Barruecopardo over the coming period."
Detail
On 29 April 2015, the Company announced that it had finalised project financing arrangements for the development of its Barruecopardo Tungsten Project in Salamanca, through the signing of binding agreements with OCM Luxembourg Tungsten Holdings S.À.R.L. ("OCM Tungsten Holdings"), funds managed by Oaktree Capital Management, L.P. ("Oaktree"). The Oaktree Financing provided a total of USD 99.7 million (circa €90.4 million), securing the full funding for the development of Barruecopardo together with a significant budget to conduct the early evaluation of a potential underground mining Stage 2 expansion of the Project. The implementation of the Oaktree Financing was conditional, inter-alia, on shareholder approval, which was obtained at an extraordinary general meeting convened on 19 May, 2015, by way of the Ormonde circular dated 29 April 2015 ("EGM Circular"). In early June, a number of mechanical restructuring steps required to implement the Group structure under the Oaktree Financing were completed and closing of the Oaktree Financing occurred on 19 June 2015, with the initial equity contribution equating to USD 25 million being provided by OCM Tungsten Holdings, and with this equity having now been contributed to Saloro SLU (the company holding the mining concession for Barruecopardo and which will develop the Project). In accordance with the terms of the Oaktree Financing, the balance of the equity funding consideration will be paid on such date or dates as may be requested by Ormonde on fifteen business days' notice and drawdowns under the debt facility will occur in accordance with the terms of the Facility Agreement (details of which were set out in the EGM Circular).
OCM Tungsten Holdings now holds a 70% interest in Barruecopardo JV (the joint venture holding company) with Ormonde holding a 30% interest, and acting in the capacity of manager. Barruecopardo JV in turn holds a 100% interest in Saloro SLU and Ormonde Geologia SLU (the holder of several investigation permits in proximity to Barruecopardo).
Activation of initial key activities started in June, including the Stage 2 detailed engineering design works by Fairport Engineering Limited to enable procurement of key equipment. The Stage 3 construction management contract is currently being negotiated.
With the implementation and construction timeline now initiated, commissioning from Barruecopardo is targeted by end 2016. Initial steps in the implementation of the Project revolve around placement of orders for priority equipment, and advancing final (construction) design works for process plant, infrastructure and for the water management system. Whilst these activities are being completed, the land expropriation process, which has commenced, will be advanced in parallel.
Enquiries to:
Ormonde Mining plc
Kerr Anderson, Managing Director Tel: +353 (0)1 8253570
Capital M Consultants
Simon Rothschild Mob: +44 (0)7703 167065
Murray Consultants
Pat Walsh Tel: +353 (0)1 4980300 Mob: +353 (0)87 2269345
Davy Corporate Finance (Nomad / ESM Adviser, Joint Broker and Financial Adviser to Ormonde)
Eugenée Mulhern / Roland French Tel: +353 (0)1 6796363
SP Angel Corporate Finance LLP(Joint Broker)
Ewan Leggat / Katy Birkin Tel: +44 (0)20 3 470 0470
Swedbank Norway (Advisor to Ormonde on the Oaktree Financing)
Anders Hakonsen Tel: +47 23 23 82 32
About Ormonde
Ormonde Mining Plc is admitted to trading on the AIM market in London and the ESM market in Dublin and is a mineral development and exploration company focused on Spain (Ticker: ORM). In partnership with funds managed by Oaktree Capital Management ("Oaktree") through the joint venture company Barruecopardo JV BV (Ormonde 30%/Oaktree 70%), the parties are now developing a low cost tungsten mining operation at Barruecopardo in the Salamanca Province to become a major, European supplier of tungsten, with commissioning targeted for late 2016. Ormonde also has other exploration projects with gold and copper.
About Oaktree
Oaktree is a leading global investment manager specialising in alternative investments with USD 100 billion in assets under management as of 31 March 2015, on behalf of pension funds, insurance companies, institutional investors and sovereign wealth funds, among others. Headquartered in Los Angeles, the firm has over 900 employees and offices in 17 cities worldwide. For additional information, please visit Oaktree's website at www.oaktreecapital.com
ENDS