4th Apr 2014 13:20
LONDON (Alliance News) - Ormonde Mining PLC Friday said it is to raise GBP2.0 million before expenses in a 50 million share placing, as it looks to begin developing its flagship Barruecopardo Tungsten Project.
Each share is priced at 4 pence.
Ormonde Mining shares were Friday quoted at 4.32 pence, down 11.4%.
In a statement, Ormonde Mining said the placing is made up of two tranches. The first is a GBP800,000 tranche for about 19.7 million new shares, representing about 4.7% of its existing shares in issue. The first tranche is expected to complete on April 11. Ormonde Mining said the shares to be issued in the first tranche are within its existing share capital and allotment authorities.
The GBP1.2 million second tranche, for about 30.3 million new shares, represents about 7.2% of the existing shares in issue, and 6.9% of those that will will be in issue once the first tranche completes.
The issue of the second tranche shares requires shareholder approval. Completion is expected on or around May 6.
"We are very pleased with the interest in and ongoing support for the company and would like to welcome some new institutional shareholders to our register. The funds generated through this placing will provide Ormonde with the resources required to move forward on both financing and design work required to commence development of our flagship Barruecopardo Tungsten Project," Managing Director Kerr Anderson said in a statement.
"Having recently signed a tungsten supply agreement with Noble, which at current tungsten prices would be expected to generate revenues in excess of USD350 million over the agreement's initial five-year term, and with the mining concession anticipated shortly, we are entering a very exciting time for the company," Anderson added.
By Samuel Agini; [email protected]; @samuelagini
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