The board of Ormonde Mining has unanimously rejected an approach from Canadian-based Almonty Industries to acquire Ormond in a share-for-share exchange deal.

The Irish exploration group said Almonty was proposing to swap one of its shares for every 12.2 Ormonde shares.

Ormonde said it considered the approach from Almonty to be “speculative, opportunistic and lacking in both strategic and economic merit for Ormonde shareholders”.

It also said it believed there would be “negligible support” from its shareholders for the proposal.

The board said it had “unanimously rejected this approach”.

"The key focus for Ormonde at this time is on making significant progress towards the development of its flagship tungsten project at Barruecopardo in Spain, " chairman Mike Donoghue said.

“Ormonde is not surprised that Almonty recognises the attractions of Barruecopardo. However, Ormonde’s board sees no merit for Ormonde shareholders exchanging shares in Ormonde for shares in Almonty at a value which the Board believes significantly undervalues Ormonde.

“The proposal would result in a significant dilution of Ormonde shareholders’ ownership of Barruecopardo, whilst not providing funds required to develop the Barruecopardo Project.”

Ormonde said it strongly advised shareholders to take no action in relation to Almonty’s approach.