TRADING in the shares of news exploration vehicle Ormonde Mining is due to commence on the Exploration Securities Market next Tuesday. The company plans to place 10 million shares at 12p per share to raise £1.2 million before expenses.

The money will be used to finance gold exploration in Mexico, Tanzania and Ireland, according to a statement issued yesterday.

The company added that it will complement its exploration activities by buying advanced projects which will achieve early mine production and provide cash flow.

Ormonde Mining incorporates some of the assets of Burmin Mining, which merged with the Australian group Sipa Resources in 1993.

The current management team bought these assets back from Sipa last year and merged them with their other exploration interest. The management include Mr Des Burke, who founded Burmin in 1983 and was managing director until its merger with Sipa in 1993.

The chairman is Mr Michael Donoghue, who was previously general manager of operations for Delta Gold in Australia. The other directors are Mr David O'Beirne, a partner in the Dublin law firm, Dockrell Farrell, and Mr Hugh McCormack, who was previously chief financial officer of Anglo Irish Bank.

The four directors will own around 25 per cent of the company after the placing.

Ormonde currently has the right to earn a 70 per cent interest in a gold mining concession in Mexico and the right to purchase four gold prospecting licences in Tanzania.

The company expects to spend around £100,000 on exploratory drilling in Mexico and 500,000 on its Tanzanian licences in 1996, according to Mr Burke.