Ormonde discusses investment in Spanish copper project

Ormonde Mining said this morning it has entered into discussions with a 'major mining company' on investment in its La Zarza project in the Huelva province of southern Spain.

In a statement, the exploration company said the new investor would have the right to earn a 51% stake in La Zarza over a three-year period by spending $7m (€5m) on extended exploration activities.

"The Investing Party would extend the previous exploration by Ormonde to cover the entire extent of the 3km-long La Zarza massive sulphide deposit," the statement said. The aim would be to evaluate

the potential for deposit to host much larger resources of copper.

The new investor could subsequently earn a 75% interest by completing a feasibility study on a mining project.

Ormonde said it expects the deal to be complete by the end of September.