Ormonde Mining signs 5-year supply agreement

Shares in mining minnow Ormonde Mining fell by 14.8 per cent this morning, as the company announced a five-year supply agreement with Noble Resources International.

SaloroSLU, Ormonde’s wholly owned subsidiary which holds the rights to its flagship Barruecopardo Tungsten Project in Salamanca, Spain, has entered into abinding offtake agreement for tungsten concentrate production from Barruecopardo with Noble Resources.

Under the terms of the agreement, Noble will purchase 100 per cent of the tungsten concentrate produced from the Barruecopardo open pit mine during its initial five years of operation. At the end of this period, the parties mighto extend the agreement, or otherwise enter into an arrangement whereby Noble provides marketing agency services to Saloro for concentrate sales.

Kerr Anderson, Ormonde’s managing director, said that of particular interest is Noble’s “experience and track record in distribution and marketing commodities globally, both to developed and high demand growth markets”.

“On the back of significant recent developments in permitting and financing of our flagship Barruecopardo Tungsten Project, we now have a five year supply agreement with a strong partner, who has committed to purchase 100 per cent of the tungsten concentrate produced from the open pit mine over this period. This is a key milestone for the project and is an essential component which enables the company to progress its development plans.”