Ormonde shares up after tungsten deal
IRISH natural resources company Ormonde Mining has signed a $350m (€255m) deal to sell all of the tungsten produced at its new Spanish mine for five years.
The five-year 'off-take' agreement has been struck with Singapore-based Noble Group, which specialises in buying and distributing natural resources.
Under the deal Ormonde has a buyer locked in for 100pc of tungsten produced at the Barruecopardo site in Salamanca, Spain, for five years.
Based on the current price per tonne of $370, the deal would be worth $350m over the five years. That compared to the company's market capitalisation of just under €30m. The contract with Noble Group includes a possibility to extend the sale agreement if both parties agree.
Shares closed up 4.6pc at 5.75 pence in London. The shares are up more than 28pc this year. In contrast, on the ISE, the shares fell to close down more than 14pc.