Business

Tuesday 28 February 2017

Ormonde Mining gets $25m cash injection to develop flagship Spanish tungsten mine

Ormonde Mining
Ormonde Mining

Irish resources firm Ormonde Mining has its first injection of equity capital from US private equity giant Oaktree Capital, worth $25m, to progress its flagship asset, a Spanish tungsten mine.

US fund Oaktree Capital recently took a majority stake in the Barruecopardo mine after shareholders in Ormonde voted overwhelmingly in favour of a deal last month.

The move saw the fund and the company split ownership of the tungsten mine 70pc-30pc in return for almost $100m (€88m) in debt and equity.

Ormonde says that it has now completed all conditions relating to the Oaktree Financing. In a statement the Meath-based firm said has is examining a construction timeline for the project and is aiming to begin commissioning for the venture by the end of next year.

Kerr Anderson, Ormonde's Managing Director, said: "I am extremely pleased to report the closing of the $99.7m Oaktree Financing, and the receipt by the project company of the initial $25m in equity funding. Activities that commence the project's development timeline have now been initiated, with commissioning targeted by the end of 2016.”

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