18th Feb 2021 10:59
(Alliance News) - Ormonde Mining PLC said the resolutions due to be considered at Thursday's reconvened annual general meeting have been withdrawn and the meeting dissolved.
Ormonde shares were trading 22% lower in London on Thursday at 1.86 pence each.
The Irish natural resource company said it has come to the decision to dissolve the AGM as a result of being unable to obtain the support of its largest shareholder for resolutions 6 and 7. Resolution 6 would have allowed the company to issue shares to third parties as consideration for a transaction.
Ormonde highlighted that approval of resolution 6 was necessary to facilitate the timely completion of the proposed acquisition of a number of copper and polymetallic licenses in the Republic of the Congo, under terms which have been under discussion for several months and are largely agreed.
Back in January, Ormonde was in the late stages of a potential transaction to acquire, or have the rights to acquire, up to an 80% interest in two exploitation licenses in a "highly prospective and underexplored" district in the Republic of the Congo.
"While the transaction could be completed as an all-cash transaction without any shareholder approvals, the company believes the optimal formula is a milestone-based mix of cash and Ormonde shares as consideration for the acquisition," the company said in its statement Thursday.
"In addition, the board would prefer to retain as much cash in treasury as possible to be put into value-enhancing and on-the-ground activities in the Republic of the Congo," the company added.
Ormonde said it believes that this transaction would be a "transformational deal" for all shareholders. However, due to the inability of the company to issue shares without resolution 6 being approved, Ormonde has been considering alternative structuring options for the transaction.
By Evelina Grecenko; [email protected]
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