Irish mining firm Ormonde doubts suitor

Ormonde Mining has expressed doubt about fresh claims from potential suitor, Almonty Industries, that funds are in place to cover a possible takeover of the Irish firm.

Meath-based Ormonde is set to put an agreed funding deal with US private equity firm Oaktree Capital Management to a shareholder vote next Tuesday. If passed, Oaktree would take a 70% stake in Ormonde and its flagship asset, the Barruecopardo tungsten project in western Spain, in return for providing €90.4m in project funding, which would enable the asset to be developed by the end of next year.

Last month, Ormonde rejected a second proposed offer from Almonty, valued at €27m, and urged its shareholders to vote for the Oaktree plan. Ormonde said it was not confident Almonty could meet its proposal to acquire the firm in cash. It has stressed that the Almonty proposal seriously undervalues Ormonde.