REG - Ormonde Mining PLC - Investment & Suspension of Listing

Ormonde MiningAnnouncement

07/02/2023 07:00

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RNS Number : 0722P  Ormonde Mining PLC  07 February 2023

This announcement contains inside information

 

7 February 2023

 

Ormonde Mining plc

("Ormonde" or the "Company")

 

Investment in UK Metals Explorer, Option Agreement

&

Suspension of Listing Pending Possible RTO

 

Ormonde is pleased to announce that it is has acquired a 20 percent interest
in Peak Nickel Limited ("PNL"), a UK-based entity with expertise and interests
in battery metal mining prospects. The Company's investment will enable a
fast-track initial work programme aimed at identifying modern, code-compliant
resources in those interests.

 

Key Terms:

 

·    Ormonde to acquire the initial 20 percent of PNL for £450,000 (the
"Investment Proceeds")

·    Ormonde granted an exclusive option by PNL (the "Option") to either:

o  invest up to a further £4 million in cash in PNL for further exploration
work, bringing Ormonde's interest to 49.9%; or

o  acquire the remaining 80% of PLN by way of issuance to PNL of Ormonde
ordinary shares.

 

Initial Work Programme

The Investment Proceeds will be expended under an agreed work programme (the
"Initial Work Programme"). The Initial Work Programme, which is anticipated to
commence imminently and complete within three months, will include
approximately 1,350 metres of diamond core drilling, following which it is
anticipated that a code-compliant resource estimate will be completed for the
purposes of preparing a Competent Person's Report.

 

Option

Subject to certain conditions, the Company has been granted a conditional
exclusive Option which can be exercised following completion of the Initial
Work Programme. The exercise by Ormonde of the Option would be subject to the
results of the Initial Work Programme and other factors, including, inter
alia, an evaluation of the mineral resource prospects, the completion of
further due diligence, regulatory approvals, and, potentially, seeking a
"whitewash" under the Irish Takeover Rules.

 

As an exploration company, PNL does not currently have any material revenues,
profits or losses, or net assets.

 

Suspension of Listing Pending Possible RTO

Ormonde became an AIM Rule 15 cash shell in October 2022 therefore being
required to announce an acquisition or acquisitions that would be deemed to
constitute a reverse takeover ("RTO") under AIM Rule 14 and the Euronext
Growth market rules on, or before, the date falling six and twelve months
respectively from 3 October 2022 prior to being suspended.

 

The Option, if exercised, would constitute such a transaction, and
accordingly, the Company's ordinary shares will be suspended from trading on
AIM and Euronext Growth with effect from 7.30 a.m. today. The Company's
ordinary shares will remain suspended until such time as an AIM admission
document and Euronext Growth information document have been published seeking
readmission. An RTO transaction would be subject to approval by Ormonde
shareholders, therefore an AIM admission document and Euronext Growth
information document would be sent to shareholders with a notice convening a
general meeting.

 

 

Enquiries:

 

Ormonde Mining plc

Brian Timmons, Chairman

Tel: +353 (0)1 801 4184

 

Vigo Consulting (Investor Relations)

Ben Simons / Charlie Neish

Tel: 44 (0)20 7390 0230

 

Davy (Nomad, Euronext Growth Listing Sponsor and Broker)

Barry Murphy

Tel: +353 (0)1 679 6363

 

About Ormonde Mining plc

 

Ormonde is a cash shell focussed on the evaluation and execution of new
opportunities through which the Company can leverage its listing and balance
sheet to generate shareholder value whilst placing a strong emphasis on cash
preservation. Ormonde shares are traded on AIM in London and on the Euronext
Growth market in Dublin.

 

For more information, visit the Company's website at www.ormondemining.com
(http://www.ormondemining.com) .

 

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