24 Mar 2014 07:00
24 March 2014
Ormonde Mining plc
("Ormonde" or "the Company")
Tungsten Offtake Agreement with Noble Group for Barruecopardo
The Board of Ormonde is pleased to advise that SaloroSLU ("Saloro"),its wholly owned subsidiary which holds the rights to its flagship Barruecopardo Tungsten Project in Salamanca, Spain ("Barruecopardo" or "the Project"), has entered into abinding offtake agreement (the "Agreement") for tungsten concentrate production from Barruecopardo with Noble Resources International Pte. Ltd ("Noble"), a wholly-owned subsidiary of Noble Group Limited, a global market-leading commodities supply-chain manager of energy products, metals, minerals & ores and agricultural products with total revenues of US$98 billion in 2013.
Under the terms of the Agreement, Noble will purchase 100% of the tungsten concentrate produced from the Barruecopardo open pit mine during its initial five years of operation. Based upon anticipated tungsten production from the open pit (under the production schedule for this period), and if the current tungsten price (APT) of around US$370 per metric tonne unit (1) were to be applied, this would equate to net revenues in excess of US$350M for tungsten concentrate sales over the five year period. At the end of this period, the parties shall seek to extend the Agreement or otherwise enter into an arrangement whereby Noble provides marketing agency services to Saloro for concentrate sales.
Kerr Anderson, Ormonde's Managing Director, commented:
"We are extremely pleased to have entered into this offtake agreement with an organisation possessing the capability and financial strength of the Noble Group. Of particular interest to us is Noble's experience and track record in distribution and marketing commodities globally, both to developed and high demand growth markets.
On the back of significant recent developments in permitting and financing of our flagship Barruecopardo Tungsten Project, we now have a five year supply agreement with a strong partner, who has committed to purchase 100% of the tungsten concentrate produced from the open pit mine over this period. This is a key milestone for the Project and is an essential component which enables the Company to progress its development plans."
Noble Group
Noble Group is listed on the Singapore stock exchange, and operates from over 140 locations worldwide. It is currently ranked number 76 in the Fortune Global 500, which is the list of the top 500 corporation globally ranked by revenues, with total sales revenues of US$98 billion in 2013. Noble manages a diversified portfolio of essential natural resources, with integrated sourcing, marketing, processing, financing and transportation operations, and is a global supply-chain manager of energy products, metals, minerals and ores and agricultural products. Noble currently has trading activities in Spain in the agricultural and food sectors.
Note: (1) Ammonium paratungstate (APT) price in March 2014 is approximately US$370 per metric tonne unit (mtu) as quoted by the Metal Bulletin. One mtu = 10 kg.
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
SP Angel Corporate Finance LLP(Joint Broker)
Ewan Leggat / Katy Birkin Tel: +44 (0)20 3463 2260
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.