Ormonde in Exploration Deal with Major on La Zarza
Monday, July 13th, 2009
Ormonde Mining plc is pleased to announce that it has entered into discussions with a major mining company (“the Investing Party”), under which the Investing Party would carry out an expanded exploration programme on Ormonde’s La Zarza ground holdings in the Huelva Province of southern Spain. The key terms which form the basis of the discussions are as follows:
• The Investing Party would extend the previous exploration by Ormonde to cover the entire extent of the 3km long La Zarza massive sulphide deposit, to evaluate the potential for this major body to host much larger resources of copper mineralisation.
• The Investing Party would have the right to earn a 51% interest in La Zarza over a three (3) year period by spending US$7 million on these expanded exploration programmes and subsequent evaluation activities, with a minimum commitment of US$1 million in the first year.
• Subject to completion of the earn-in, the Investing Party would have the right to increase its interest in La Zarza to 75% by the completion of a feasibility study on a mining project that meets its investment criteria.
• Technical due diligence has been completed and the agreement is now subject to contract and completion of legal and environmental due diligence, which is expected to complete and be effective by the end of September, 2009.
• Further details will be announced in due course.
Mike Donoghue, Ormonde’s Chairman, said:
“We are very pleased with this development on La Zarza. Ormonde has to-date focussed its evaluation work on the area of higher grade copper-gold mineralisation located within the eastern end of the much larger La Zarza massive sulphide deposit. However, new exploration targets have also been identified within this massive sulphide body where there is significant potential for additional copper mineralisation. The drill testing and evaluation of these would be funded as part of the Investing Party’s earn-in work programme. We look forward to seeing further progress on this project.”
For further information visit: www.ormondemining.com