Saloro Financing Update

RNS Number : 1454Q
Ormonde Mining PLC
17 October 2019
 

17 October 2019

 

 

 

 

Ormonde Mining plc

 

("Ormonde" or "the Company")

 

Saloro Financing Update

 

Ormonde reports that Saloro S.L.U. ("Saloro"), the operator of the Barruecopardo Tungsten Mine in Spain in which Ormonde holds a 30% joint venture interest, has entered into a €10 million, twelve month term loan facility ("New Term Loan") to be provided by funds managed by Oaktree Capital Management, L.P. ("Oaktree"). As announced by Ormonde on 20th September 2019, the New Term Loan provides Saloro with additional liquidity support as it establishes mining operations on the main orebody at Barruecopardo.

 

Saloro can draw from the New Term Loan on an as required basis, in tranches of at least €500,000, over the loan period (subject to compliance with the New Term Loan conditions).  Interest on the New Term Loan will be capitalised in full, at a rate of 18% per annum ("pa") on drawn funds, with a 3% pa commitment fee accruing on undrawn amounts. Drawn funds, capitalised interest and commitment fees are repayable at the end of the 12 month term, by bullet repayment. 

 

Under the New Term Loan, Saloro has the option to substitute drawings under the funding line with letters of credit procured by Oaktree, to support Saloro in obtaining loan funding from third party banks, rather than borrowing directly from Oaktree under the New Term Loan.  Discussions are advancing with a number of third party banks in relation to this lower cost funding route.

 

It has also been agreed that interest on the original loan in place with Oaktree since 2015 ("OCM Facility") will be accrued in full, at a rate of 15%, over the New Term Loan's 12 month term.  This will revert to 7% cash interest and 5% payment in kind ("PIK") interest at the end of this period, should certain financial covenant tests be achieved, or 7% cash interest and 7% PIK interest if tests are not achieved.

 

 

Enquiries:

 

Ormonde Mining plc

Paul Carroll, Chief Financial Officer

Fraser Gardiner, Chief Operating Officer

Tel: +353 (0)1 8014184

 

Davy (Nomad, Euronext Growth Advisor and Joint Broker)

John Frain / Barry Murphy

Tel: +353 (0)1 6796363

 

SP Angel Corporate Finance LLP (Joint Broker)

Ewan Leggat 

Tel: +44 (0)20 3 470 0470

 

Capital M Consultants

Simon Rothschild

Mob: +44 (0)77 03167065

 

Murray Consultants

Mark Brennock

Tel: +353 (0)1 4980300

Mob: +353(0)872335923

 

 

 

Notes:

 

This announcement includes certain statements that may be deemed "forward-looking statements". Although the Company believes the forward-looking statements are based on reasonable assumptions, such statements should not be in any way construed as guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements.

 

Risk factors are typical of a mining operation, and include (but are not limited to): the availability and / or delivery of equipment and contractor services; plant performance; rates of metal recovery in the process plant; mined ore tonnages and grade in comparison to estimated ore reserves; cost overruns and the potential for future additional funding requirements; and tungsten concentrate sales prices.

 

Barruecopardo has been developed through a funding package agreed with Oaktree Capital Management (70% interest). Ormonde's participation in the Mine is held through its 30 per cent minority interest in Barruecopardo Joint Venture BV, a company which is governed by a Shareholder Agreement which provides for certain rights and obligations for each party. The Mine is operated by Saloro S.L.U., a Spanish incorporated subsidiary of Barruecopardo Joint Venture BV.

 

 For more information, visit www.ormondemining.com  


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