TIDMTHR
RNS Number : 6198I
Thor Mining PLC
20 June 2017
20 June 2017
THOR MINING PLC
PLACEMENT TO FUND TUNGSTEN AND LITHIUM EXPLORATION PROGRAMS
The Directors of Thor Mining PLC ("Thor" or the "Company") (AIM,
ASX: THR) are pleased to announce a strategic financing to allow
acceleration of the Company's project interests including the
recently acquired 25% interest in, and option to acquire up to 100%
of, US Lithium Pty Limited.
Highlights:
-- The Company has raised gross proceeds of GBP460,000 through
the conditional placing of 51,111,111 new ordinary shares of 0.01p
each ("Ordinary Shares") at a price of 0.9p (the "Placing and
Subscription"), the mid-market price at the time the placing was
undertaken;
-- Chairman Mick Billing to invest GBP27,000 and Non-Executive
Director Paul Johnson to invest GBP45,000 in the placing, subject
to shareholder approval;
-- Placees to receive one warrant with each placing share to
subscribe for a further new Ordinary Share at 1.8p per share
("Warrant"), valid for two years from the date of issue and with an
acceleration clause, should the 5 day VWAP of Thor's shares exceed
5.0p during this two year period;
-- Additional cash augments existing cash balances and enables
the Company to accelerate exploration work on the Company's project
interests.
Mr Mick Billing, Executive Chairman, commented:
"I am pleased to announce this very important financing which
builds on the existing solid cash position and enables the Company
to undertake an accelerated work programme. Proactivity on the
ground delivers news to market and we anticipate numerous market
updates across the Company's interests in the near term.
In particular, we await results from the drilling work at the
Dundas Gold Project, we are scheduled to commence further drilling
at Pilot Mountain in Nevada within the next few weeks and have
commenced our review of US Lithium Pty Limited's projects, and will
be active on the ground in Arizona and New Mexico shortly.
We are entering a highly news generative period for the company
and I would to thank our shareholders for their support and the
investors in this placing."
Placing and Subscription summary
The Placing and Subscription will raise in aggregate gross
proceeds of GBP460,000, through the conditional placing of
51,111,111 Ordinary Shares at a price of 0.9p per share. Placees
will also be granted one Warrant for each Ordinary Share
subscribed. The Placing was undertaken by SI Capital Ltd.
Warrants issued with the Placing and Subscription contain an
"acceleration" clause whereby if at any time during the life of the
warrants, the 5 day VWAP of Thor shares exceeds 5 pence then the
warrant holder will have 5 working days in which those warrants
must be exercised, or they will expire.
The Company will shortly convene a general meeting of the
Company at which shareholders will be asked to grant the Directors
the necessary authorities to issue the 51,111,111 Ordinary Shares
and 51,111,111 Warrants.
The net proceeds of the Placing and Subscription will enable the
Company to accelerate and extend planned drilling at its Pilot
Mountain tungsten project with the objective of aggressively
expanding its resource inventory, along with financing initial
exploration work on the Big Sandy lithium project in Arizona USA,
in which the Company has a 25% interest and the option to acquire
the residual 75% ownership of the licence holder, US Lithium Pty
Limited, as announced on 14 June 2017. The Placing and Subscription
will also provide the Company with additional working capital.
Director Participation in the Placing and Subscription
Mick Billing and Paul Johnson, both directors of the Company,
propose to participate in the conditional Placing and Subscription
by subscribing for 3,000,000 and 5,000,000 Ordinary Shares
respectively (with matching Warrants) for an aggregate subscription
price of GBP72,000, subject to shareholder approval at the general
meeting.
A notice of general meeting, scheduled to be held on or around
27 July 2017, will shortly be sent to shareholders, in order to
seek approval for increased director authorities to issue Ordinary
Shares and Warrants, to be used in the first instance to issue the
Ordinary Shares and Warrants pursuant to the Placing and
Subscription. Further announcements will be made in this respect as
soon as practicable.
Director Amount Ordinary Resultant Resultant Warrants
subscribed Shares holding percentage held
LIR issued of Ordinary holding (of
Shares enlarged issued
share capital)
---------- ------------ ---------- ------------- ----------------- -----------
Mick
Billing 27,000 3,000,000 28,265,242 6.66% 15,765,040
Paul
Johnson 45,000 5,000,000 15,002,649 3.54% 18,200,000
The participations by Mick Billing and Paul Johnson in the
conditional Placing and Subscription constitute related party
transactions for the purposes of AIM Rule 13. The independent
directors, having consulted with the Company's nominated adviser,
Grant Thornton UK LLP, consider that the terms of the related party
transactions are fair and reasonable in so far as the Company's
shareholders are concerned.
Settlement and dealings
Subject to shareholder approval at the general meeting, assuming
Thor issues no further Ordinary Shares in the meantime, following
the completion of the Placing and Subscription, Thor will have
424,124,319 Ordinary Shares in issue.
For further information, please contact:
Enquiries:
Mick Billing +61 (8) 7324 Thor Mining Executive
1935 PLC Chairman
Ray Ridge +61 (8) 7324 Thor Mining CFO/Company
1935 PLC Secretary
Colin Aaronson/ +44 (0) 207 Grant Thornton Nominated
Daniel Bush/ 383 5100 UK LLP Adviser
Richard Tonthat
Elliot Hance +44 (0) 207382 Beaufort Securities Joint Broker
8300 Limited
Nick Emerson +44 (0) 1483 SI Capital Ltd Joint Broker
/ Andy Thacker 413 500
Tim Blythe/ +44 (0) 207 Blytheweigh Financial
Camilla Horsfall 138 3222 PR
Updates on the Company's activities are regularly posted on
Thor's website www.thormining.com, which includes a facility to
register to receive these updates by email, and on the Company's
twitter page @ThorMining.
About Thor Mining PLC
Thor Mining PLC is a resources company quoted on the AIM Market
of the London Stock Exchange and on ASX in Australia.
Thor holds 100% of the advanced Molyhil tungsten project in the
Northern Territory of Australia, for which an updated feasibility
study in 2015(1) suggested attractive returns. Thor also holds 100%
of the Pilot Mountain tungsten project in Nevada USA which has a
JORC 2012 Indicated Resources Estimate(2) on 2 of the 4 known
deposits.
In February 2017, Thor completed the sale of its Spring Hill
Gold project for A$3.5million, plus a future royalty of:
-- A$6 per ounce of gold produced from the Spring Hill tenements
where the gold produced is sold for up to A$1,500 per ounce;
and
-- A$14 per ounce of gold produced from the Spring Hill
tenements where the gold produced is sold for amounts over A$1,500
per ounce.
Notes
(1) Refer ASX and AIM announcement of 12 January 2015
(2) Refer ASX and AIM announcement of 22 May 2017
(3) Refer ASX announcement of 15 June 2017 and AIM announcement
of 14 June 2017
Refer ASX and AIM announcement of 17 February 2017
At the date of this announcement gold is trading at
approximately A$1,640/oz
This information is provided by RNS
The company news service from the London Stock Exchange
END
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