Ormonde share move raises €1.3m

Mineral exploration company, Ormonde Mining has raised just under €1.3m from a share placing, to enable it to bring its planned tungsten mine in western Spain up to speed ahead of the anticipated award of a full drilling permit.

The Co Meath-based firm said yesterday that the proceeds of the placing will enable it to commence the definitive engineering work — at its Barruecopardo tungsten project near Salamanca — required “to allow for the placement of process plant priority equipment orders”.

Management has already received town and provincial approval to begin drilling at Barruecopardo and is just awaiting to pass the final hurdle: formal regional permission, which would give the project the green light. It is thought Barruecopardo could generate nearly $30m in operating income every year, once commercial, and could supply 8% of all tungsten sourced outside of China, the leading global supplier of the metal.

“The successful completion of this placing,” according to Ormonde’s managing director, Kerr Anderson, “will further support the company in its active discussions with strategic and financial partners, relating to the funding [of the Barruecopardo project], which we hope to bring to fruition in the near future.”

Last month, Ormonde rejected a $35m takeover approach, from Canadian miner, Almonty Industries, whose main interest was the Barruecopardo asset.