7 Feb 2023 07:00
This announcement contains inside information
7 February 2023
Ormonde Mining plc
("Ormonde" or the "Company")
Investment in UK Metals Explorer, Option Agreement
&
Suspension of Listing Pending Possible RTO
Ormonde is pleased to announce that it is has acquired a 20 percent interest in Peak Nickel Limited ("PNL"), a UK-based entity with expertise and interests in battery metal mining prospects. The Company's investment will enable a fast-track initial work programme aimed at identifying modern, code-compliant resources in those interests.
Key Terms:
· Ormonde to acquire the initial 20 percent of PNL for £450,000 (the "Investment Proceeds")
· Ormonde granted an exclusive option by PNL (the "Option") to either:
o invest up to a further £4 million in cash in PNL for further exploration work, bringing Ormonde's interest to 49.9%; or
o acquire the remaining 80% of PLN by way of issuance to PNL of Ormonde ordinary shares.
Initial Work Programme
The Investment Proceeds will be expended under an agreed work programme (the "Initial Work Programme"). The Initial Work Programme, which is anticipated to commence imminently and complete within three months, will include approximately 1,350 metres of diamond core drilling, following which it is anticipated that a code-compliant resource estimate will be completed for the purposes of preparing a Competent Person's Report.
Option
Subject to certain conditions, the Company has been granted a conditional exclusive Option which can be exercised following completion of the Initial Work Programme. The exercise by Ormonde of the Option would be subject to the results of the Initial Work Programme and other factors, including, inter alia, an evaluation of the mineral resource prospects, the completion of further due diligence, regulatory approvals, and, potentially, seeking a "whitewash" under the Irish Takeover Rules.
As an exploration company, PNL does not currently have any material revenues, profits or losses, or net assets.
Suspension of Listing Pending Possible RTO
Ormonde became an AIM Rule 15 cash shell in October 2022 therefore being required to announce an acquisition or acquisitions that would be deemed to constitute a reverse takeover ("RTO") under AIM Rule 14 and the Euronext Growth market rules on, or before, the date falling six and twelve months respectively from 3 October 2022 prior to being suspended.
The Option, if exercised, would constitute such a transaction, and accordingly, the Company's ordinary shares will be suspended from trading on AIM and Euronext Growth with effect from 7.30 a.m. today. The Company's ordinary shares will remain suspended until such time as an AIM admission document and Euronext Growth information document have been published seeking readmission. An RTO transaction would be subject to approval by Ormonde shareholders, therefore an AIM admission document and Euronext Growth information document would be sent to shareholders with a notice convening a general meeting.
Enquiries:
Ormonde Mining plc
Brian Timmons, Chairman
Tel: +353 (0)1 801 4184
Vigo Consulting (Investor Relations)
Ben Simons / Charlie Neish
Tel: 44 (0)20 7390 0230
Davy (Nomad, Euronext Growth Listing Sponsor and Broker)
Barry Murphy
Tel: +353 (0)1 679 6363
About Ormonde Mining plc
Ormonde is a cash shell focussed on the evaluation and execution of new opportunities through which the Company can leverage its listing and balance sheet to generate shareholder value whilst placing a strong emphasis on cash preservation. Ormonde shares are traded on AIM in London and on the Euronext Growth market in Dublin.
For more information, visit the Company's website at www.ormondemining.com.