4 Dec 2012 07:00
4 December, 2012
Ormonde Mining plc
("Ormonde" or "the Company")
Placing raising Stg£1.4 Million (€1.7 Million)
DUBLIN & LONDON: 4 December, 2012 - Ormonde Mining plc announces that it has procured placing commitments in respect of 25,474,547 new ordinary shares of nominal value €0.025 each in the capital of the Company. The Placing, conducted by Davy, with shares placed with new and existing institutional and private investors, at a price of Stg5.5p per share (the "Placing") raised in aggregate Stg£1.4 million (approximately €1.7 million) (before expenses).
The net proceeds from the Placing will enable Ormonde to further advance the development of its flagship Barruecopardo Tungsten Project in Salamanca Province, western Spain. In particular, funds raised are intended to support the Company's ongoing discussions in respect of the provision of project finance to the Barruecopardo project and to enable the continuation of engineering design work. The balance of the proceeds will be used to fund the Company's interest in its Gold Joint Venture and for general working capital purposes.
Three of the directors of Ormonde also participated in the Placing: Mike Donoghue in respect of 181,818 ordinary shares, Kerr Anderson in respect of 72,727 ordinary shares and Steve Nicol in respect of 36,364 ordinary shares. Following completion of the Placing their respective interests in the enlarged issued share capital of the Company will be 3,426,812, 977,141 and 150,000 ordinary shares, representing 0.86%, 0.25% and 0.04% respectively of the enlarged issued share capital of the Company.
Commenting on the Placing, Kerr Anderson, Managing Director, said:
"The successful completion of this placing will support the Company in its active ongoing discussions with strategic, financial and commercial partners, as well as local stakeholders, relating to the 2013 development of our Barruecopardo Tungsten Project.
"Tungsten supply issues have been highlighted recently by both the EU, which has listed tungsten as a 'critical raw material' due to its 'high economic importance and high relative supply risk', and the British Geological Survey which ranked tungsten in joint highest position in its "Current Supply Risk Index" of metals. We believe that Barruecopardo will be an important western European tungsten mine providing a stable source of supply. We look forward to informing shareholders on successful progress at Barruecopardo and our gold 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 398,494,402 ordinary shares in issue. The new ordinary shares, which represent approximately 6.39% 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 7 December, 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
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 projects include:
The Barruecopardo Tungsten Project - Ormonde is developing a low cost mining operation at Barruecopardo to produce ~12% of current non-Chinese annual global mine production.
The La Zarza Copper Project - a large "massive sulphide" deposit with significant copper resources.
Gold Explorationin 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.