Almonty loses interest in Ormonde Mining

Canadian mining firm Almonty Industries says it has no remaining interest in Co Meath-based company Ormonde Mining now that the latter has approval to proceed with its planned partial sale of its flagship asset.

Ormonde yesterday received 94% shareholder backing for a funding plan for its Barruecopardo tungsten project near Salamanca in western Spain. The plan will see US private equity firm, Oaktree Capital Management provide €90.4m in project financing in return for a 70% equity stake.

Attracted by Barruecopardo, Almonty recently approached Ormonde with a €27m non-binding takeover proposal, which was ultimately rejected by the Irish company’s board. While Ormonde had expressed doubt that Almonty could finance such a deal, the Canadian business last week claimed it had the funds in place.

Ormonde’s board was asked at yesterday’s EGM if doing a deal with Oaktree nullified interest from Almonty. Executive chairman Mike Donoghue said that a deal wouldn’t block Almonty from tabling a firm bid if it so wished.

However, a spokesperson for the Canadian firm later clarified that any chance of doing a deal had passed and Almonty has “no further interest in the company [Ormonde]”.

Investors covering 42% of Ormonde’s share capital voted on yesterday’s poll and the approval rate was welcomed by the board.

“I’m pleased with the significant support from shareholders for the Oaktree financing and would like to thank shareholders, accordingly,” said Mr Donoghue.