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Ormonde Mining gets shareholder approval for Oaktree financing

A mining concession has already been granted for Barruecopardo  and production is scheduled to begin in late 2016. 
Ormonde Mining gets shareholder approval for Oaktree financing
The re-development of the Barruecopardo mine can now advance

Ormonde Mining (LON:ORM) shareholders have given their seal of approval to Oaktree Capital’s proposed project financing for the Barruecopardo tungsten project in Salamanca, Spain.

As a result Oaktree will now provide around US$100mln to finance the Barruecopardo development, and in return it will receive a 70% stake in the mine.

More than 93% of votes cast at Ormonde’s Extraordinary General Meeting, in Dublin, were in favour of the transaction. Some 200.2mln votes were cast, which represent just 42.3% of Ormonde’s issued share capital.

Ormonde’s board backed the Oaktree proposal rather than a rival takeover approach from Almonty, which was offering at a premium price of 4.25p per share, 

“I am pleased with the significant support from shareholders for the Oaktree financing and would like to thank shareholders accordingly,” said Ormonde chairman Mike Donoghue.

“We can now move forward with a comprehensive financing package into the development of Barruecopardo as an important tungsten mining operation.”

Oaktree will have a majority of members on the board at Barruecopardo, but key decision making will be made jointly, chief executive Kerr Anderson told Proactive Investors last month, and Ormonde will manage the project at the operating level. 

A mining concession has already been granted and production is scheduled to begin in late 2016. 

The two companies may also co-operate on other tungsten projects, he said.

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Article
February 29 2016

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