Irish exploration company Ormonde Mining raises more than £1m in placing
MINERAL resources firm Ormonde Mining has secured €1.27m from a share placing with institutions and private investors that it will use to commence engineering works on one of its prospects.
The Irish company said it raised slightly more than £1m at a price of 4.75p per share.
“The net proceeds from the placing will enable Ormonde to commence the definitive engineering work required to allow for the placement of process plant priority equipment orders at Barruecopardo,” according to the company.
The Barruecopardo tungsten site in western Spain is one of the biggest undeveloped projects of its type in the world outside China. Ormonde reckons it could produce 227,000 tonnes a year of tungsten trioxide and generate annual net pre-tax operating cash flows of €29m based on a price of $350 a tonne.
Tungsten trioxide is used in applications such as fireproofing fabric, and as a pigment to colour ceramics and paint.
Ormonde said the balance of the funds it has just raised will be made available for preparatory activities including land rental and for working capital.
It added that it is continuing discussions in respect of the provision of project funding for Barruecopardo, with “active engagement and detailed due diligence in progress”.
It said that the talks are taking place against a backdrop where the price per tonne of tungsten trioxide is $415 per tonne, compared to the $350 per tonne it has used in its feasibility study.
The company has previously predicted that the project would require a capital outlay of €48.5m to develop, with operating costs working out at the equivalent of about $99 per tonne of tungsten trioxide.