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Ormonde deal may see it divest La Zara

Friday, February 22 11:27:38

Irish-based and Spanish-focussed miner, Ormonde, today said that it has entered in to an option agreement with Spanish company Nueva Tharsis that could see it divest from its La Zarza Copper Project.

Ormonde, through its wholly owned Spanish subsidiary Ormonde Espana SL, acquired a 100pc interest in La Zarza from Nueva Tharsis in 2007 subject to staged payments by Ormonde Espana, of which E1.3 million from a total of E2 million remains outstanding.

Under the terms of the Agreement entered into between the parties, Ormonde Espana will collaborate with Nueva Tharsis in the planned disposal of the entire mining assets and interests of Nueva Tharsis to a third party.

Ormonde has agreed to contribute the entire share capital of Ormonde Espana to this package for a total cash consideration of E5 million. Ormonde does not expect any material transaction costs in relation to this sale and on successful completion Ormonde would have no further obligations in respect of the E1.3 million owed by Ormonde Espana to Nueva Tharsis.

Four investigation permits held by Ormonde Espana along strike from La Zarza, which were explored in 2011 and 2012 under an option agreement with Antofagasta Minerals SA, will be transferred out of Ormonde Espana to another Ormonde subsidiary and are not included in the Agreement with Nueva Tharsis. Ormonde intends to seek another joint venture partner to further explore this retained area.

Kerr Anderson, Ormonde's Managing Director, said: "The potential sale of Ormonde Espana for E5 million, as part of a larger package of mining assets being disposed of by Nueva Tharsis, presents an opportunity for us. A successful due diligence process and completion of the divestment would enable Ormonde to be in a position to focus our management time and resources on the development of our flagship Barruecopardo Tungsten Project and on advancing our emerging gold projects."