11th Mar 2015 11:17
LONDON (Alliance News) - Shares in Ormonde Mining PLC surged higher on Wednesday after Canada-based Almonty Industries Ltd said it has approached Ormonde with a indicative, non-binding takeover proposal which was later confirmed by Ormonde.
No financial details of the offer were disclosed, and Almonty noted that there can be no certainty a formal offer will be made or on what terms.
Ormonde, in a statement confirming the offer later Wednesday, said the proposal does not include any material detail on how the necessary financing for its Barruecopardo tungsten project in Spain will be secured.
Ormonde said it will respond to Almonty and provide a further update on the offer in due course. It said it strongly advises shareholders to take no action over the offer in the interim.
"Almonty believes that the strategic fit between Almonty and Ormonde is excellent and that there are significant advantages to combining the companies," said Almonty Chairman, President and Chief Executive Officer Lewis Black said.
Shares in Ormonde were up 49% to 3.5 pence on Wednesday, the best performer in the AIM All-Share.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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