15th Jun 2016 09:21
LONDON (Alliance News) - Ormonde Mining PLC Wednesday said it will now begin implementing a new construction schedule for the Barruecopardo project in Salamanca, Spain.
The follows a recent administrative appeal from a third party in relation to an element of the land acquisition process at Barruecopardo, and whilst the relevant authority found in favour of the project operating company in that matter, this process has delayed some aspects of the timeline for the project.
The project partners, Ormonde and Oaktree Capital Management LP, have approved and adopted a new construction schedule for the project, which will now be commissioned in 2017.
Ormonde noted that tungsten prices have begun recovering recently, meaning the outlook for tungsten in the short term is moderately positive, although medium to longer term forecasts predict substantial price rises.
"The optimisation of the project construction schedule is a balanced response to the contents of the expert legal advice relating to the likely timelines for the compulsory acquisition of the remaining land plots, and it more closely aligns first production with a forecasted improvement in tungsten prices, with the aim of optimising project valuation," said Managing Director Steve Nicol in a statement.
"We will now commence implementation of this new staged construction schedule, commencing with construction works on the water dams, the continued installation of site services and other construction readiness works, and I look forward to updating shareholders on progress in these, and other areas, as the schedule advances," Nicol added.
Shares in Ormonde were untraded Wednesday. They last closed at 1.26 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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