Ormonde Mining plc (LON:ORM) has told investors its management continues to review new project opportunities, whilst the coronavirus (COVID-19) pandemic has restricted the firm’s Spanish mine activities to the desktop.
More than 80 projects have so far been looked at by the company since it agreed the divestment of its stake in the Barruecopardo tungsten mine project, it noted.
“A small number of these opportunities remain promising, being of an appropriate scale whereby the company’s cash would aid meaningful development, and which the directors believe could have the potential to add materially to shareholder value,” Ormonde said in a business update.
“Work on advancing these opportunities towards a successful conclusion will continue over the coming period,” it added.
Also updating on its COVID-19 related impacts and measures, the company said it aims to maximise cash reserves for new opportunities, and so it has agreed salary reductions of 25% from May 1.
At the same time, share options will be issued to employees and directors. It said that the holding of options helps align the interests of the executives and directors with shareholders, with a view to providing growth in the company’s share price.
The options will have a ten-year duration and will vest in three equal instalments – upon issue, after one year, and after two years.
Ormonde said: “The company’s long term success will be dependent upon the assessment of value-adding opportunities for investment; aligning the interests of all directors and senior executives with shareholders incentivises all concerned to achieve the best possible outcome and to minimise undue dilution of interests.”