Ormonde Mining PLC Declaration of Urgent Occupation - Approved (4131C)
June 28 2016 - 1:00AM
UK Regulatory
TIDMORM
RNS Number : 4131C
Ormonde Mining PLC
28 June 2016
28 June 2016
Ormonde Mining plc
("Ormonde" or "the Company")
Declaration of Urgent Occupation - Approved
The Board of Ormonde is pleased to provide the following update
on the Barruecopardo Project in Salamanca, Spain ("Barruecopardo"
or the "Project"). This update follows the recent announcement
regarding the land acquisition process and optimised construction
schedule which the Project operating company, Saloro SLU
("Saloro"), is advancing.
HIGHLIGHTS
-- A Declaration of Urgent Occupation ("Declaration") relating
to the land blocks for which Saloro has requested compulsory
purchase, has been approved by the Regional Government of Castilla
y Leon ("Regional Government"). This legal declaration represents
the completion of the main legal pre-requisite required to allow
for immediate access to, and use of, the lands without having to
await the completion of the compulsory purchase process.
-- The Declaration had been requested by Saloro as part of its
application for compulsory purchase of certain land blocks,
submitted in March 2015.
-- The Declaration has been approved and awarded well ahead of
the date required by the optimised construction schedule - reducing
any related residual risk associated with achieving the updated
schedule.
-- Some procedural and legal steps remain prior to actual access
to these land blocks, with the current guidance on commissioning
for the Project in late 2017 remaining valid, though now
substantially de-risked with respect to timing.
Steve Nicol, Ormonde's Managing Director, commented:
"The decision by the Regional Government to vote in favour of
the Declaration of Urgent Occupation on the remaining lands
required to enable development of the Project, is a major success
for the Company. The decision, coming well ahead of the date
required by our optimised schedule, shows the level of support that
exists for the Project at all levels within the Spanish region in
which we operate.
The Company would like to thank the Regional Government for its
support over the period that we have been advancing the Project,
and especially for this latest and significant decision, which
de-risks the timing of Project development and allows the schedule
to advance with increased confidence.
On the ground, the implementation of the construction schedule
is continuing and we look forward to updating shareholders on
progress over the coming period."
Detail
Declaration of Urgent Occupation
The compulsory purchase laws in Spain recognise a normal
compulsory purchase route ("Normal Route") and a fast-track route
known as the "Urgent Route". The main difference between the two
routes lies in the timing at which the party requesting the
compulsory purchase receives access to and utilisation of the
relevant lands. The Urgent Route allows for such land access and
use before a full determination has been made in relation to the
ownership and/or value of the relevant land plots. Therefore this
route results in land access well ahead of the timeframes required
by the Normal Route.
However, the Urgent Route requires an express approval, provided
by way of a positive vote by the relevant elected government (in
this case being the Regional Government of Castilla y Leon). It is
the notice of a positive vote in favour of the Declaration by the
Regional Government of Castilla y Leon, and its resultant approval,
that Saloro has just received.
As a result of this approval, Saloro will be required to make a
down payment for the estimated value of the lands to be compulsory
purchased prior to gaining access to the lands. These funds will be
made available to the rightful owners of the lands following
completion of the full procedure.
Optimised Construction Schedule
As reported in early June, the Project partners have approved an
optimised construction schedule for the Project which targets
commissioning of the Barruecopardo mine in late 2017. Although this
timeline remains valid, it has been substantially de-risked
following the approval of the Declaration of Urgent Occupation on
the remaining land blocks required to allow for full implementation
of the schedule.
A glossary explaining technical terms contained in this
announcement can be found at
www.ormondemining.com/en/investors/technical_glossary.
For more information please visit www.ormondemining.com.
Enquiries to:
Ormonde Mining plc
Steve Nicol, Managing Director Tel: +353 (0)1 8253570
Capital M Consultants
Simon Rothschild Mob: +44 (0)7703 167065
Murray Consultants
Mark Brennock Tel: +353 (0)1 4980300 Mob: +353 (0)87 2335923
Davy Corporate Finance (Nomad / ESM Adviser, Joint Broker and
Financial Adviser) Eugenée Mulhern / Roland French Tel: +353 (0)1
6796363
SP Angel Corporate Finance LLP (Joint Broker)
Ewan Leggat Tel: +44 (0)20 3 470 0470
About Ormonde
Ormonde Mining plc is admitted to trading on the AIM market in
London and the ESM market in Dublin and is a mineral development
and exploration company focused on Spain (Ticker: ORM). In
partnership with funds managed by Oaktree Capital Management
("Oaktree") through the joint venture company Barruecopardo JV BV
(Ormonde 30%/Oaktree 70%), the parties are developing a low cost
tungsten mining operation at Barruecopardo in Salamanca Province to
become a major European supplier of tungsten. Ormonde also has
other exploration projects for gold and copper.
This information is provided by RNS
The company news service from the London Stock Exchange
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