Ormonde Mining PLC – ORM – Interim Results

Ormonde Mining PLC – ORM – Interim Results

The Board of Ormonde (the “Board”) announces the Company’s unaudited interim results for the six months ended 30 June 2020. During the period, Ormonde completed the disposal of its 30% interest in the Barruecopardo Tungsten Mine, for a €6 million cash consideration, and thereafter focussed its efforts on the review of its other Spanish assets and new opportunities for the deployment of its capital and enhancement of shareholder value.

 

Following an extensive review of a wide range of resource projects, since the completion of the Barruecopardo disposal, the Board is pleased to advise that the Company has recently entered into an exclusivity agreement in relation to a potential acquisition of a resource project.  Due diligence is ongoing, the pace of which may be impacted by COVID-19 related limitations, with there being no certainty that a transaction will be concluded.  The Company will provide an update to shareholders in relation to progress as appropriate.

 

Spanish projects

·     Gold licences:  Planning and permitting in relation to a cost-effective field programme has been advanced at certain of the Company’s existing Spanish gold exploration projects to follow up on high grade gold intersections from previous drilling campaigns.

·     La Zarza: The Company continues to pursue the disposal of its assets relating to the La Zarza copper-gold project in the Iberian Pyrite Belt.

 

 

Financial results

·     The Company reports a profit after tax for the six months ended 30 June 2020 of €1,160,000 (2019: €1,108,000 loss).  The reported profit includes a gain of €1,600,000 related to accounting for the completion of the Barruecopardo Mine disposal in February 2020.

·     As at 30 June 2020, the Company held €5.6 million of cash.

 

 

Jonathan Henry, Ormonde’s Chairman, commented:

 

“Having completed the disposal of our interest in the Barruecopardo Mine for a €6 million cash consideration, the principal focus of the Company has been on the identification of a compelling resource opportunity.

 

In this regard, I am pleased to advise that the Company has recently signed an exclusivity agreement, and commenced a due diligence process, in relation to what the Board believes to be an exceptional resource opportunity.  We very much look forward to advancing diligence on this new opportunity towards completion of a transaction, the aim of which is to create substantial value for shareholders, and we look forward to updating shareholders on progress in this regard, in due course.”

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