Ormonde Closes Oaktree Financing for Barruecopardo Project

Ormonde Mining (LSE:ORM) announced that it closed the Oaktree project financing for its Barruecopardo tungsten project in Salamanca, Spain on June 19 and the initial US$25 million of equity funds has been received from ORM Tungsten Holdings SARL.

Highlights:

• Completion on 19 June 2015 of all conditions relating to the Oaktree Financing (totalling USD 99.7 million), including the receipt by Saloro SLU (the company which is developing the Project) of the initial Oaktree equity contribution of USD 25 million.
• Activation of initial key activities, including the Stage 2 detailed engineering design works by Fairport Engineering, required to enable procurement of key equipment.
• Final negotiations of a Stage 3 construction management contract being completed.
• Commencement of an implementation and construction timeline with commissioning targeted for the end of 2016.

As quoted in the press release:

This follows Ormonde shareholder approval of the Oaktree Financing on 19 May 2015, and the subsequent completion of a number of mechanical restructuring steps required to implement the revised Group structure. In conjunction, with this access to funding, a number of relevant activities have been initiated to commence the implementation of the development schedule for Barruecopardo.

Kerr Anderson, managing director of Ormonde Mining, commented:

I am extremely pleased to report the Closing of the USD 99.7 million Oaktree Financing, and the receipt by the project company of the initial USD 25 million in equity funding. This follows Ormonde’s shareholders’ approving the financing in May and completion of required implementation steps in June. Activities that commence the Project’s development timeline have now been initiated, with commissioning targeted by the end of 2016. We look forward to keeping shareholders updated on development progress at Barruecopardo over the coming period.

Click here to read the full Ormonde Mining (LSE:ORM) press release.