Placing Raising StgGBP3.04 m
Ormonde Mining PLC
12 May 2006
Ormonde Mining plc
Placing Raising Stg£3.04 million (€4.47 million)
DUBLIN & LONDON: 12 May 2006 - The Board of Ormonde Mining plc ("Ormonde" or
"the Company") is pleased to announce the conditional placing of 15,202,871 new
ordinary shares of nominal value €0.025 ("New Ordinary Shares") in the capital
of the Company at Stg20.0p (29.4c) per share, equating to approximately 10 per
cent of the existing issued share capital of the Company and raising in
aggregate approximately Stg£3.04 million (approximately €4.47 million) before
expenses ("the Placing"). The New Ordinary Shares will, when issued and fully
paid, rank pari passu in all respects with the existing issued ordinary shares.
The Placing is conditional only on the New Ordinary Shares being admitted to
trading on the Alternative Investment Market of the London Stock Exchange
("AIM") and on the Irish Enterprise Exchange of the Irish Stock Exchange
("IEX"). The Placing was arranged by Davy and Seymour Pierce. The New Ordinary
Shares were placed primarily with institutional investors in London and Dublin.
Paul Mihalop, a Non-Executive Director of the Company, subscribed for 500,000
New Ordinary Shares as part of the Placing. This represents approximately 0.30%
of the enlarged issued share capital of the Company (his total shareholding in
the Company).
The Company intends to use the net proceeds of the Placing, amounting to
approximately Stg£2.92 million (approximately €4.29 million), to further its
strategy of building a gold mining business in Spain. In particular, proceeds
will be used to conduct the Feasibility Study on the La Zarza Copper-Gold
Project and advance the Company's gold-tungsten interests in Salamanca. This
work will include drilling of the newly-identified gold targets and full
assessment of the tungsten tailings project. Remaining funds will be used for
general corporate and working capital purposes.
Application will be made to the London Stock Exchange and to the Irish Stock
Exchange for the New Ordinary Shares to be admitted to trading on AIM and IEX,
respectively. Dealing is expected to commence in these shares on 17 May 2006.
The Board also wishes to advise that the Company's Chairman, Mike Donoghue, a
mining engineer of 30 years global experience, is now an Executive Director
reflecting the more advanced nature of Ormonde's lead project La Zarza.
Enquiries to:
Ormonde Mining plc
Kerr Anderson, Managing Director
Fraser Gardiner, Director
Tel: +353 (0)46 9073623
Davy
Eugenee Mulhern/Fergal Meegan
Tel: +353 (1) 679 6363
Seymour Pierce Limited
Sarah Wharry/James Lesser
Tel: +44 (0) 20 7107 8000
Bankside Consultants
Simon Rothschild
Tel: +44 (0)20 7367 8871
Background Information
Ormonde Mining plc is quoted on the AIM in London and the IEX in Dublin. The
Company's strategy is to enhance shareholder value by developing gold-focused
projects in Spain and taking them into production. Ormonde has a strong local
Spanish management team, supported by a Board with extensive mine development
and exploration experience.
For more information and contact details including email, please visit
www.ormondemining.com.
12 May 2006
This information is provided by RNS
The company news service from the London Stock Exchange
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