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Ormonde Mining: Almonty Industries will not proceed with offer

Ormonde Mining (LON:ORM) said Almonty Industries is not proceeding with an offer for the company, adding it (Ormonde) was continuing to focus on advancing its Barruecopardo tungsten project in Spain.

Almonty had until the end of January to decide whether it would make a bid since it first announced plans for a share for share exchange in August last year. Today, it said it will not proceed.

Ormonde chairman Mike Donoghue said the directors had been "consistent and unanimous in their view that the unsolicited approach from Almonty and its proposed share for share exchange was opportunistic, without strategic or economic merit for Ormonde shareholders.."

"In addition, one of the concerns we had regarding the operational performance of Almonty's Los Santos mine has been highlighted in an announcement released today by Almonty concerning a re-statement downward of its tungsten recovery rate for the year ended 30 September 2013," it added.

"Released from the restrictions of the offer period, we will continue our focus on advancing Barruecopardo to production and we look forward to providing further updates to shareholders in this context in due course."

Shares in Ormonde dipped 10.64% to 5.25p.

Giles Gwinnett
Giles Gwinnett
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