Ormonde Mining dips on unexercised option for La Zarza Copper Project

16th May 2013 13:49

AIM-listed mineral resource company Ormonde Mining has reported that the option period for a possible agreement with the Spanish company Nueva Tharsis SA relating to the potential divestment of the company's interest in the La Zarza Copper Project, has ended with the option not being exercised.Ormonde Mining said that notwithstanding this, Nueva Tharsis had advised it that negotiations with interested third parties continue and that a transaction "may still complete". Under the terms of the agreement entered into between the parties, Ormonde's wholly-owned subsidiary Ormonde España, which holds Ormonde's interest in La Zarza, agreed to collaborate with Nueva Tharsis in the planned disposal of the entire mining assets and interests of Nueva Tharsis to a third party. In this regard, Ormonde said that it had agreed to contribute the entire share capital of Ormonde España to this package for a total consideration of €5.0m. Ormonde Mining's share price was down 7.32% to 4.75p at 13:40 on Thursday.MF