29th Sep 2014 10:27
LONDON (Alliance News) - Ormonde Mining PLC Monday reported a wider net loss for the first half of the year as administration costs rose, but said it was making progress on its Spanish tungsten project and expects a mining concession imminently.
The company, which is developing a tungsten project in Spain and also has a gold joint venture in the country, reported a net loss of EUR1.1 million for the six months to end-June, wider than the EUR943,000 loss it reported a year earlier, as a drop in exploration costs was outweighed by increased administration expenses. It isn't currently earning any revenue.
Ormonde was focused on furthering the permitting process for its Barruecopardo Tungsten Mine in Salamanca Province in the first half. It got an environmental permit, and said a legal review of the status of the Barruecopardo concessions, which had to be repeated, has now been finished meaning it should get a mining concession imminently.
It also appointed the engineer to build the plant and infrastructure, and put in place a product offtake contract with Noble Group which will buy all the tungsten concentrate from the Barruecopardo open pit mine during its first five years of operation.
Ormonde said it had also made progress in securing debt financing for the project's development. It is proposing a senior bond issue as part of the package, with the remainder coming through equity, possibly through a joint venture.
It said work in its gold joint venture with Aurum Mining was limited and mainly comprised compilation and refinement of the database on the main targets identified to date through drilling.
Ormonde Mining shares were up 5.6% at 4.75 pence Monday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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