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Miner Ormonde reveals board changes after sale of JV stake

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Stock photo: Thinkstock

Stock photo: Thinkstock

Thinkstock

Stock photo: Thinkstock

The Dublin-listed Ormonde Mining, which earlier this year sold its 30pc stake in the Barruecopardo joint venture in Spain to Oaktree Capital Management, has made a number of changes to its board.

Chairman Michael Donoghue and chief financial officer John Carroll intend to retire from the board and company, as announced last month, following the completion of the JV disposal.

They will be replaced by Tim Livesey and Richard Brown, who both bring "extensive" mining industry experience to the firm.

Mr Livesey is a geologist and mining executive who has spent 30 years working in gold and base metals.

Mr Brown is a chartered accountant with 28 years of experience in business and corporate advisory roles, and is currently chief financial officer of TSX Venture Exchange-quoted Gabriel Resources.

Ormonde said the new additions will provide it with the right leadership, experience and direction as it targets a new phase for the company.

The new stages for the business include potentially pursuing growth through mergers and acquisitions, supported by the cash proceeds from the proposed sale, Ormonde said.

Jonathan Henry, director and incoming chairman of Ormonde, said: "It is our intention, in the short term, for the new board to work together with executive management to build a fresh and exciting vision and strategy for Ormonde, absolutely focused on value creation for shareholders, including, if appropriate, through the pursuit of M&A opportunities."

In January, the company sold its 30pc stake in Barruecopardo to Oaktree Capital Management for €6m. Oaktree is the major shareholder in the project.

At the time, Ormonde said low initial ore grades and delays to accessing the main ore body had resulted in overall production and related revenues being "substantially lower" than the feasibility study forecasts carried out in 2012. This, when coupled with "accelerated waste mining" and the related increase in mining costs, has led to extra funding requirements for the mine.

Irish Independent