28 September 2022

Ormonde Mining plc

("Ormonde" or "the Company")

Interim Results for the Six Months Ended 30 June 2022

Ormonde announces its unaudited interim results for the six months ended 30 June 2022.

Key points:

·    Ongoing review of acquisition and investment opportunities across a number of jurisdictions

·    Conditional sale of La Zarza assets (the "Sale") provides opportunity to further strengthen the Company's balance sheet in order to create shareholder value through acquisitions

·    Following shareholder approval of the Sale, Company to become a cash shell - required to undertake a reverse takeover within six months

Operational Review:

New Projects

During the first six months of the year, the Board of Directors (the "Board") and its advisory team evaluated a range of projects located in a number of countries covering, inter alia, precious metal, precious stones, base metals and battery metals opportunities. While there are numerous early-stage exploration opportunities available in the mining sector currently, such investments carry a range of risk profiles, particularly those that may require significant upfront investment with little visibility over near or medium-term upside. With shareholder value in mind, the Board is looking to identify opportunities in which Ormonde's investment will have the ability to advance the project in a timely manner and enhance its profitability potential without taking on excessive risk.

La Zarza

On 29 July 2022, the Company announced that it had entered into a conditional agreement for the sale of its interests in the La Zarza Copper-Gold Project in Spain ("La Zarza") for a cash consideration of €2.3 million, payable as €800,000 on closing and three further payments of €500,000 each on the first, second and third anniversary of closing. The Sale is conditional on approval by Ormonde shareholders at an Extraordinary General Meeting ("EGM") to be held later today.  The Company has received irrevocable undertakings from the Company's largest shareholder, Thomas Anderson, holding 24.41% of the Company's shares, to vote in favour of the resolutions in relation to the Sale.

Salamanca and Zamora Gold Projects

The three investigation permits that make up these gold exploration projects came up for renewal during July and September 2021. Applications to extend each permit for a further three years have been submitted to the mining authorities where they are currently being processed. The renewal of the permits will require further exploration commitments. This process can take a considerable length of time and carries no guarantee that the permits will be renewed. Ormonde's interest in the Salamanca and Zamora Projects on 30 June 2022 was 50.9% and 46.6% respectively.

Financial Review:

Interim Results

The Company reports a significantly reduced loss after tax for the six months ended 30 June 2022 of €363,000 (2021: €630,000 Loss). The reduction of €267,000 in the reported loss was primarily driven by the significant reductions in director and senior management salaries and the elective non-payment of director fees during the period.

As at 30 June 2022, the Company held €3.4 million of cash (€3.7 million at 31 Dec 2021), with a further €800,000 due on closing of the Sale and three further payments of €500,000 each on the first, second and third anniversary of closing.

EGM Recommendation and AIM Rule 15

Following shareholder approval of the disposal of the La Zarza assets, the Company would become a cash shell pursuant to AIM Rule 15 and the Euronext Growth Market rules, and as such will, within a period of six months and twelve months respectively from the date of the disposal, be required to make an acquisition or acquisitions which constitute a reverse takeover under AIM Rule 14 and the Euronext Growth Market rules. If no such acquisition or acquisitions are made, the Company's shares would be suspended from trading pursuant to AIM Rule 40 and the Euronext Growth Market rules.

The Board unanimously recommended that shareholders voted in favour of the resolutions relating to the Sale.   

Brendan McMorrow, Chief Executive Officer, commented:

"The sale of our assets at La Zarza will be an important milestone for the Company and, following the approval by Ormonde's shareholders, would place the Company on an even stronger financial footing from which to execute on new opportunities. To release value from the assets at a premium to book value is a very satisfactory outcome for the Company and its shareholders.

Although we have not yet identified the optimal project for our next phase, I am encouraged by the quality and volume of the opportunities that we have reviewed and the strength of the newly constructed Board and its advisory team. Our balance sheet strength allows us the benefit of selectivity, ensuring that when we do move forward with a transaction, we expect it to be a highly attractive one."

For further information, please contact:

Ormonde Mining plc

Brian Timmons, Non-Executive Chairman

Tel: +353 (0)1 801 4184

Vigo Consulting (Investor Relations)

Ben Simons / Charlie Neish

Tel: 44 (0)20 7390 0230

Davy (Nomad, Euronext Growth Listing Sponsor and Joint Broker)

Barry Murphy

Tel: +353 (0)1 679 6363

Company website: www.ormondemining.com