Ormonde Mining looks to progress Spanish mine as losses narrow
Losses at Irish resources firm Ormonde Mining fell from €1.8m to €1.6m in the 12 months to the end of 2014, according to the company's latest set of financial results.
Ormonde did not produce a revenue line in 2014, so the results only reflect the cost of running the business.
The year was notable for the firm due to the progress made on the Barruecopardo tungsten project in Spain.
An environmental permit was granted for the project early last year, and the full mining permit was granted in November 2014.
The Meath-based company also raised £2m (€2.7m) through a placing in April of last year to progress engineering works, permitting and funding activities relating to Barruecopardo and for general working capital purposes.
US fund Oaktree Capital recently took a majority stake in the Barruecopardo mine after shareholders in Ormonde voted overwhelmingly in favour of a deal which saw the fund and the company split ownership of the tungsten mine 70pc-30pc in return for €90m in debt and equity.
The approval saw off a challenge from Canadian resources firm Almonty, which had had tabled an indicative offer to buy the Irish company for €27m in cash and stock.
The Canadian company had been circling Ormonde for almost two years.
Barruecopardo is now due to start production in late 2016 and Ormonde said it was positioned to develop it into a significant, low-cost mine and a major European supplier of tungsten, with expansion potential.
Chairman Mike Donoghue said: "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 €90.4m 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," Mr Donoghue added.