Ormonde Mining PLC Saloro Financing Update (1454Q)
17 October 2019 - 5:00PM
UK Regulatory
TIDMORM
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 EUR10 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 20(th) 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 EUR500,000, 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
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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