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Ormonde raises €4m in new funds

EXPLORATION company Ormonde Mining raised €4m after selling 34 million new shares at 12c a share in Dublin and London yesterday.

The money will be used to help the Dublin-based mining company to develop its tungsten mine in western Spain.

Ormonde recently published a report which suggested that the company's Spanish mines had more tungsten than previously thought.

Ormonde said yesterday that around €1.6m would be used to fund engineering design work at the Barruecopardo mine near Salamanca. It has spent around €5m or €6m on developing the Barruecopardo project but will have to spend around €48m to begin extracting the tungsten.

Ormonde would either borrow money or take a strategic partner, chief executive Kerr Andersen told this newspaper last month.

"The funding will provide a good degree of comfort to shareholders that the group now has a platform for an important period of negotiations to secure the final funding for the mine development," Davy Stockbroker analyst Job Langbroek said.

Shares rose during trading in Dublin yesterday, closing up 8.3pc at 13c.

Irish Independent