Ormonde Mining plc has acquired a 20% interest in Sheffield-based Peak Nickel Ltd which has interests in “battery metal” mining prospects.
TERMS
The company said its investment would enable a “fast-track initial work programme” aimed at identifying modern, code-compliant resources.
Ormonde will pay £450,000 and is granted exclusive option either to invest up to a further £4 million in cash in Peak Nickel, taking Ormonde’s interest to 49.9%, or acquire the remaining 80% with Ormonde ordinary shares.
WORK PROGRAMME
The company anticipates to start the initial work programme, without stating where, “imminently and complete within three months, to include approximately 1,350 metres of diamond core drilling.”
Ormonde then expects to complete a code-compliant resource estimate for a competent person’s report.
SUSPENSION OF TRADING
In October 2022, the company sold its Spanish copper-gold-zinc assets after which it became an AIM Rule 15 cash shell.
Ormonde had to announce an acquisition or acquisitions constituting a reverse takeover (RTO) on or before the date, falling six and 12 months respectively from 3 October 2022 prior to being suspended.
On 7 February, the company’s ordinary shares were suspended from trading on AIM and Euronext Growth and will remain so until it publishes documents seeking readmission.
An RTO transaction is subject to shareholder approval at a convened general meeting.