Business
Update on Acquisition
Update on Acquisition.
About this update from Ormonde Mining Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 5494U\n Ormonde Mining PLC\n 06 April 2021\n \n \n \n \n This announcement contains inside information\n \n \n \n \n \n 6 April 2021\n \n \n \n \n \n Ormonde Mining plc\n \n \n (\"Ormonde\" or \"the Company\")\n \n \n \n \n \n Business development update\n \n \n \n \n \n \n \n \n On 16 September 2020, the Company announced that it had entered into an exclusivity agreement in relation to the proposed acquisition of a majority stake in certain copper mining licenses (the \"Licenses\") in the Republic of the Congo (\"Proposed Transaction\"), and the Company gave further details in relation to the Proposed Transaction and the Licenses in an announcement on 14 January 2021. Since that time, the Company has been working to advance negotiations against the backdrop of a global pandemic and a presidential election in the Republic of the Congo, both of which resulted in delays to the process. \n \n \n \n \n \n However, following the most recent AGM of the Company, Ormonde is no longer authorised to issue shares for a transaction of this nature without a further shareholder approval process (see announcement of \n 18 February 2021\n ), which introduced an increased level of uncertainty and execution risk for the counterparties. Ultimately the counterparties demanded more onerous terms for the Proposed Transaction, which significantly impacted the accretive potential of the Proposed Transaction for all Ormonde shareholders. This was unacceptable to the Company and a suitable compromise could not be agreed. As a result, all discussions have been terminated.\n \n \n \n \n \n The Board of the Company believed that the Proposed Transaction represented a transformative acquisition for Ormonde, focused on minimising share dilution and execution risk for Ormonde shareholders. The Board of the Company will continue to adopt this approach in its review of other suitable opportunities. However, the Company also recognises the future requirement to gain shareholder authorisation to issue shares, the uncertainty of which may limit the ability to engage in discussions requiring a share-based transaction. The Board will also now explore alternative strategies for the business in the interest of all shareholders. The Company will keep the market apprais...