Ormonde Mining PLC Update on Acquisition (5494U)
06 April 2021 - 11:43PM
UK Regulatory
TIDMORM
RNS Number : 5494U
Ormonde Mining PLC
06 April 2021
This announcement contains inside information
6 April 2021
Ormonde Mining plc
("Ormonde" or "the Company")
Business development update
On 16 September 2020, the Company announced that it had entered
into an exclusivity agreement in relation to the proposed
acquisition of a majority stake in certain copper mining licenses
(the "Licenses") in the Republic of the Congo ("Proposed
Transaction"), and the Company gave further details in relation to
the Proposed Transaction and the Licenses in an announcement on 14
January 2021. Since that time, the Company has been working to
advance negotiations against the backdrop of a global pandemic and
a presidential election in the Republic of the Congo, both of which
resulted in delays to the process.
However, following the most recent AGM of the Company, Ormonde
is no longer authorised to issue shares for a transaction of this
nature without a further shareholder approval process (see
announcement of 18 February 2021 ), which introduced an increased
level of uncertainty and execution risk for the counterparties.
Ultimately the counterparties demanded more onerous terms for the
Proposed Transaction, which significantly impacted the accretive
potential of the Proposed Transaction for all Ormonde shareholders.
This was unacceptable to the Company and a suitable compromise
could not be agreed. As a result, all discussions have been
terminated.
The Board of the Company believed that the Proposed Transaction
represented a transformative acquisition for Ormonde, focused on
minimising share dilution and execution risk for Ormonde
shareholders. The Board of the Company will continue to adopt this
approach in its review of other suitable opportunities. However,
the Company also recognises the future requirement to gain
shareholder authorisation to issue shares, the uncertainty of which
may limit the ability to engage in discussions requiring a
share-based transaction. The Board will also now explore
alternative strategies for the business in the interest of all
shareholders. The Company will keep the market appraised as work
continues towards sourcing a value accretive transaction or an
alternative course for the Company.
Commenting on these developments, Jonathan Henry, Executive
Chair, stated:
"The proposed transaction, which Ormonde has spent considerable
time and effort in trying to complete, was an exceptional
opportunity for the Company. Regrettably, the Company has been
unable to finalise binding terms agreeable to all parties and we
therefore have had no choice but to concentrate our resources
elsewhere. Management is now working with the Board to review a
number of other transactions for the business or alternative
strategies, which could deliver shareholder value and reward our
shareholders for the patience shown to date."
Enquiries to:
Ormonde Mining plc
Jonathan Henry, Executive Chair
Paul Carroll, Chief Financial Officer
Fraser Gardiner, Chief Operating Officer
Tel: +353 (0)1 8014184
Buchanan
Bobby Morse / Ariadna Peretz / James Husband
Tel: +44 (0)20 7466 5000
Email: ormonde@buchanan.uk.com
Davy (Nomad, Euronext Growth Advisor and Joint Broker)
John Frain / Barry Murphy
Tel: +353 (0)1 679 6363
SP Angel Corporate Finance LLP (Joint Broker)
Ewan Leggat
Tel: +44 (0)20 3 470 0470
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END
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