Ormonde Mining soars on conformation of Almonty bid

Spain-focused tungsten miner Ormonde Mining has confirmed it received an unsolicited takeover offer from Canadian group Almonty Industries.

Ormonde Mining said it received "an unsolicited indicative non-binding proposal" from Almonty on Tuesday night, but bemoaned a lack of detail as to how the necessary project financing for the Barruecopardo Project would be secured.

The AIM- and Dublin-listed company said it will respond to Almonty and provide a further update to shareholders in due course.

"In the meantime, Ormonde Shareholders are strongly advised to take no action with respect to the approach from Almonty," it added.

Ormonde’s 100% owned Barruecopardo tungsten project in western Spain is one of the largest undeveloped tungsten projects outside China, with 27.4m tonnes (Mt) at a grading 0.26% tungsten trioxide, 17.8Mt measured and indicated and a 9.59Mt inferred mineral resource.

In February the company signed an agreement with Oaktree Capital Management to secure Barruecopardo's funding requirements and agreed a budget to conduct the early evaluation of a Stage-2 expansion of the project.

The total funding amount provided for under the term sheet was split between debt and project equity such that Oaktree would hold a majority position in Barruecopardo.

Oaktree also agreed to loan Ormonde $1.5m, secured on a first priority basis by way of a share pledge of the project holding company to provide short-term working capital.