Ormonde Mining [AQSE:ORM], is a natural resources investment company that currently offers investors exposure to exploration assets including TRU Precious Metals TSXV:TRU a gold and copper exploration company in Newfoundland, Canada, and battery minerals through the privately-held UK exploration company, Peak Nickel.
The company was admitted to Aquis in September 2023, having cancelled its AIM and Euronext Growth listings.
Headquartered in Dublin, Ireland, Ormonde aims to realise shareholder value by investing in mining exploration plays in Tier 1 jurisdictions that it believes have significant upside potential. Just over a year ago, Ormone was cash shell, having exited its position in La Zarza Copper-Gold Project in Spain for around EUR2.3m. This was paid out with EUR800,000 at close of sale, followed by three subsequent payments of EUR500,000 on the anniversary of close.
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This allowed Ormonde to upgrade its balance sheet and seek new opportunities. In January 2023, Ormonde acquired a 20% stake in Peak Nickel, for EUR500,000, which was exploring for battery minerals in Scotland. This was followed up last September when Ormonde took a EUR2m 36% stake in TRU which is developing the Golden Rose Project across 275km2 copper-gold exploration play in the Central Newfoundland Gold Belt, an up-and-coming mining area with significant potential. TRU has a market cap of around USD4m.
Banking and Geology Team Dynamics
The team, led by Brian Timmons as executive chairman, who has a background in investment banking and fund management, and Brendan McMorrow as CEO, an experienced O&G and mining executive, screened over 100 potential exploration plays globally, before narrowing the field down to Peak and TRU.
Peak and TRU were deemed by Ormonde’s management to be sufficiently advanced to enhance value through third-party investment thereby not necessarily requiring further investment by Ormonde and its shareholders. The company also holds some legacy gold assets in Spain.
TRU is Ormonde Mining’s flagship investment, and its jewel-in-the-crown is the Golden Rose Project which is bookended by two other projects in the same mineral belt; a five-million ounce (moz) deposit to the north-east, and a 600,000oz deposit to the south-west. TRU’s tenement lies slap between the two deposits and is highly prospective with high-grade deposits already being discovered on the site.
Newfoundland has all the right ingredients to become a top-class gold mining jurisdiction – a skilled workforce, good infrastructure, benign regulation and supportive local government and communities – and although its geology is quite well-known, it is relatively underexplored.
Too good to miss
Out of the 100-or-so projects Ormonde reviewed – to put it in the company’s consultant geologist, Garth Earls’ own words, Golden Rose was: “…the standout opportunity of the projects we reviewed […] I’ve been in the business for over 40-years, and it’s an exciting opportunity that is too good to miss!”
One of the most engaging themes of where the TRU projects are located is that Newfoundland is experiencing a wave of mining consolidation, with, for example, Calibre Mining [TSE:CXB], buying Marathon Gold for USD250m in November, a 32% premium on spot price at close of the deal, which was developing the Valentine Lake project adjacent to TRU’s Golden Rose project. Ormonde’s management pointed-out that this made TRU and even-more engaging prospect.
Multi-asset potential for Ormonde Mining
TRU is planning further exploration at Golden Rose this summer, which as well as proving-up the gold assets, will also start exploring for nickel and zinc, which is also present in the area and prospecting for copper. The exploration programme is fully-funded from TRU’s own resources with a cash position of CAD2.3m.
The company’s initial investment into Peak Nickel allowed it to conduct a fast-track initial drilling programme to identify target battery minerals and Ormonde is tracing the results to see if the Scottish explorer needs any more support.
The share price opened the week (13th May) at 0.25p. From 6th September 2023 (the day after admission date to Aquis) Ormonde’s shares have fallen back around 28% and the exploration investment company has a market cap of just over GBP1m.
Ormonde has two strategic stakes in projects that have significant potential – gold at the heart of what could be the next Tier 1 gold region, and early-stage battery minerals, a key sector for the transition story and given the entry points, could offer significant future upside.
