ORM.L Regulatory News (ORM)

12 May 2006 16:00

Ormonde Mining PLC12 May 2006 Ormonde Mining plc Placing Raising Stg£3.04 million (€4.47 million) DUBLIN & LONDON: 12 May 2006 - The Board of Ormonde Mining plc ("Ormonde" or"the Company") is pleased to announce the conditional placing of 15,202,871 newordinary shares of nominal value €0.025 ("New Ordinary Shares") in the capitalof the Company at Stg20.0p (29.4c) per share, equating to approximately 10 percent of the existing issued share capital of the Company and raising inaggregate approximately Stg£3.04 million (approximately €4.47 million) beforeexpenses ("the Placing"). The New Ordinary Shares will, when issued and fullypaid, rank pari passu in all respects with the existing issued ordinary shares.The Placing is conditional only on the New Ordinary Shares being admitted totrading on the Alternative Investment Market of the London Stock Exchange("AIM") and on the Irish Enterprise Exchange of the Irish Stock Exchange("IEX"). The Placing was arranged by Davy and Seymour Pierce. The New OrdinaryShares were placed primarily with institutional investors in London and Dublin. Paul Mihalop, a Non-Executive Director of the Company, subscribed for 500,000New Ordinary Shares as part of the Placing. This represents approximately 0.30%of the enlarged issued share capital of the Company (his total shareholding inthe Company). The Company intends to use the net proceeds of the Placing, amounting toapproximately Stg£2.92 million (approximately €4.29 million), to further itsstrategy of building a gold mining business in Spain. In particular, proceedswill be used to conduct the Feasibility Study on the La Zarza Copper-GoldProject and advance the Company's gold-tungsten interests in Salamanca. Thiswork will include drilling of the newly-identified gold targets and fullassessment of the tungsten tailings project. Remaining funds will be used forgeneral corporate and working capital purposes. Application will be made to the London Stock Exchange and to the Irish StockExchange for the New Ordinary Shares to be admitted to trading on AIM and IEX,respectively. Dealing is expected to commence in these shares on 17 May 2006. The Board also wishes to advise that the Company's Chairman, Mike Donoghue, amining engineer of 30 years global experience, is now an Executive Directorreflecting the more advanced nature of Ormonde's lead project La Zarza. Enquiries to: Ormonde Mining plcKerr Anderson, Managing DirectorFraser Gardiner, DirectorTel: +353 (0)46 9073623 DavyEugenee Mulhern/Fergal MeeganTel: +353 (1) 679 6363 Seymour Pierce LimitedSarah Wharry/James LesserTel: +44 (0) 20 7107 8000 Bankside ConsultantsSimon RothschildTel: +44 (0)20 7367 8871 Background Information Ormonde Mining plc is quoted on the AIM in London and the IEX in Dublin. TheCompany's strategy is to enhance shareholder value by developing gold-focusedprojects in Spain and taking them into production. Ormonde has a strong localSpanish management team, supported by a Board with extensive mine developmentand exploration experience. For more information and contact details including email, please visitwww.ormondemining.com. 12 May 2006 This information is provided by RNS The company news service from the London Stock Exchange