Shareholders at Ormonde Mining back plans for US private equity firm to provide €87m in financing for Spanish mine development
Shareholders at Ormonde Mining have today overwhelmingly backed plans by the Irish company that will see US private equity giant Oaktree Capital provide almost $100m (€87m) in financing to develop a Spanish tungsten mine.
The approval sees 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. Almonty had been circling Ormonde for almost two years.
Ormonde, headed by managing director Kerr Anderson, has insisted the deal with Oaktree, which will see the US firm acquire a 70pc interest in the Irish company’s Barruecopardo tungsten mine, is superior to the proposal from Almonty.
At an extraordinary general meeting in Dublin yesterday, almost 94pc of the Ormonde shares voted were voted in favour of the deal with Oaktree. Just 42pc of the issued share capital in Ormonde was voted at the meeting.
Mike Donoghue, Ormonde's chairman, said that he was pleased with the “significant support” from shareholders for the Oaktree financing deal.