Ormonde Mining rebuffs Canadian bid approach

9th Aug 2013 13:38

Ormonde Mining has knocked back an unsolicited all-share bid approach from Canada's Almonty Industries.The AIM-listed company slated Almonty's proposal for being "speculative, opportunistic and lacking in both strategic and economic merit" for its shareholders.The Canadian company, which aims to buy and turnaround distressed assets in tungsten markets, had proposed handing over one Almonty share for 12.2 Ormonde shares. This would value Ormonde shares at 5.7p based on a CDN$1.10 closing price for Almonty. Ormonde said its board had unanimously rejected the approach.Chairman Mike Donoghue said: "Ormonde's Board sees no merit for Ormonde shareholders exchanging shares in Ormonde for shares in Almonty at a value which the Board believes significantly undervalues Ormonde."Shares in Ormonde jumped 19.4% to 5.08p.TB