Ormonde Mining Reports 2014 Annual Financial and Operational Results

Ormonde Mining plc (LSE:ORM) announced its 2014 final results for the period ended December 31, including post year end highlights.

As quoted in the press release:

In March 2014, prior to Ormonde’s funding agreement with Oaktree, Ormonde signed a tungsten concentrate offtake agreement with Noble Resources International Pte., a wholly-owned subsidiary of Noble Group Limited, a global market-leading commodities supply-chain manager of energy products, metals, minerals & ores and agricultural products. This agreement was structured to provide for purchase of 100% of the tungsten concentrate produced from the Barruecopardo open pit mine during its initial five years of operation. Ormonde is currently in discussions with Noble in relation to modifications to this offtake agreement. While there is nothing to suggest an agreement cannot be reached, Ormonde and Noble have the option to terminate the existing agreement should such modifications not be mutually acceptable. The Oaktree funding package for Barruecopardo is not in any way conditional on any offtake arrangements.

Land acquisition arrangements continued during 2014, utilising lease with option to purchase agreements. All land blocks were identified some time ago and the vast majority of land owners have now signed up to these agreements. The issues with the remainder are almost all identified, the bulk of these being lack of documentation. The latter issues can all be dealt with through the expropriation procedures and with the mining concession in place and funding agreed, the expropriation procedures are now in train.

The Company has reported a loss for the year of €1.63 million, compared with a loss of €1.81 million for 2013. The Company raised £2.0 million through a placing in April 2014 to progress engineering works, permitting and funding activities relating to Barruecopardo and for general working capital purposes. In conclusion, I would like to thank shareholders for their support during the last year; I believe it has been worthwhile with the substantial progress made on Barruecopardo during 2014. I look forward to the development stage of our Barruecopardo Project in the period ahead.

Highlights for the year and post-year end:

• Environmental permit for Barruecopardo approved in January 2014.
• Mining concession for Barruecopardo granted to Saloro SL (the Company’s Spanish subsidiary) in November 2014.
• Basic engineering completed by Fairport Engineering Limited, and substantial progress and preparations made that would expedite development upon completion of project financing.
• Comprehensive funding package totaling US$99.7 million (circa € 90.4 million) executed with funds managed by Oaktree Capital Management in April 2015, split between project equity of US$44.2 million and project debt of US$55.5 million, for a 70 percent Oaktree interest in a new joint venture company, Barruecopardo JV; approved by shareholders in May 2015.
• Positioned to develop Barruecopardo into a significant, low cost, long life tungsten mine and a major European supplier of tungsten, with significant expansion potential.

Mike Donoghue, chairman of Ormonde Mining, commented:

The past year has been one of transformative progress for Ormonde, with the mining concession for Barruecopardo being issued by the Spanish authorities, and the agreement of a US$99.7 million funding package with Oaktree Capital to allow for the development of our flagship Barruecopardo Tungsten Project. These two major milestones transform Ormonde from an exploration to a mining company, as we now move into the development stage at Barruecopardo.

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