Ormonde withdraws AGM resolutions after failing to secure support
Company said it had not been able to get the backing of largest shareholder
Ormonde Mining was seeking approval for a resolution that would have allowed it to use shares as payment for an acquisition.
Mining company Ormonde said it had withdrawn the remaining resolutions that were due to be considered at a reconvened annual general meeting after it failed to get the support of its largest shareholder.
The company said it would dissolve the AGM, which had already agreed a number of resolutions on December 3rd 2020. Those resolutions are unaffected, Ormonde confirmed.
The abandoned resolutions include one that would have allowed the company to issue shares to third parties as consideration for a transaction. That resolution was necessary for the “timely” completion of the proposed acquisition of a number of copper and polymetallic licenses in the Republic of the Congo, Ormonde said.
The potential acquisition was announced in September. In January, Ormonde said the deal could cost up to $800,000 in shares and cash on closing, with further payments conditional on the achievement of key technical and administrative project milestones.
The licences cover multiple high grade copper and polymetallic development and exploration projects in a highly prospective and underexplored district in the region.
Terms for the acquisition of the licences were largely agreed, but the deal includes an Ormonde share based consideration. The company is now considering alternatives to close the acquisition.