12 Mar 2012 07:00
12 March, 2012
Ormonde Mining plc
("Ormonde" or "the Company")
Placing raising Stg£3.39 Million (€4.04 Million)
DUBLIN & LONDON: 12 March, 2012 - Ormonde Mining plc announces that it has procured placing commitments in respect of 33,910,896 new ordinary shares of nominal value €0.025 each in the capital of the Company. The Placing, conducted by Davy and Fairfax, was oversubscribed with shares placed with new and existing institutional and private investors, at a price of Stg10p per share (the "Placing") raising in aggregate Stg£3.39 million (approximately €4.04 million) (before expenses).
The net proceeds from the Placing will enable Ormonde to continue with its preparations for development of its flagship Barruecopardo Tungsten Project in Salamanca Province, western Spain.
Approximately €1.6 million will be used to fund initial engineering design work at Barruecopardo ahead of completion of capital funding, and approximately €0.5 million will be paid to SIEMCALSA as consideration due in connection with Ormonde's 2011 acquisition of the final 10% interest in the Barruecopardo Tungsten Project, thereby consolidating Ormonde's 100% interest in both the Project and the surrounding tungsten and gold exploration permits. The balance of the net proceeds of the Placing will be used for general working capital purposes.
As part of the Placing, Mike Donoghue, a Director and the Chairman of Ormonde, participated in respect of 500,000 ordinary shares. Following completion of the Placing his interest in the share capital of the Company will be 3,244,994 ordinary shares, representing 0.87% of the enlarged issued share capital of the Company.
Commenting on the Placing, Kerr Anderson, Managing Director, said:
"The completion of this Placing, together with the recent release of the very positive results of the Definitive Feasibility Study for our Barruecopardo Tungsten Project, which confirmed the Project's low capital cost and exceptional economics, places the Company in a strong position to move forward with a number of critical activities over the coming months, including finalisation of off-take and capital funding arrangements. The Company welcomes the strong support from both existing and new shareholders and looks forward to informing them on successful progress atBarruecopardo and on our other Spanish projects"
The number of new ordinary shares the subject of the Placing is within the existing share capital and allotment authorities of the Company and is within the available headroom in respect of which pre-emption rights have been dis-applied. Accordingly no new shareholder approvals are required in connection with the completion of the Placing. Following the Placing, the Company will have 373,019,855 ordinary shares in issue. The new ordinary shares, which represent approximately 9.09% of the enlarged issued share capital, will on issue rank pari passu in all respects with the existing ordinary shares in the Company. Application has been made for the new ordinary shares to be admitted to trading on the AIM market of the London Stock Exchange and the ESM market of the Irish Stock Exchange and it is expected that the Placing will complete and dealings in the new ordinary shares will commence on 14 March, 2012.
For more information please visit www.ormondemining.com.
For further information:
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
Fairfax I.S. PLC (Joint Broker)
Ewan Leggat / Katy Birkin Tel: +44 (0)207 598 5368
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:
The Barruecopardo Tungsten Project - Ormonde is developing a low cost mining operation at Barruecopardo to produce ~12% of non-Chinese annual global mine production.
The La Zarza Copper Project - a large "massive sulphide" deposit with significant copper resources; exploration for an enlargement to the current copper resource is being funded through a joint venture with Antofagasta Minerals.
Gold Exploration in several highly prospective areas of western Spain.
Forward Looking Statements
Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties.
While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggestions herein. Except as required by applicable law or regulation, Ormonde does not intend to update any forward-looking statements to conform these statements to actual results.