TIDMTHR
RNS Number : 8016Y
Thor Mining PLC
08 December 2017
8 December 2017
THOR MINING PLC
OPTION AGREEMENT TO ACQUIRE PILBARA PROJECT
The board of Thor Mining PLC ("Thor" or the "Company") (AIM,
ASX: THR), is pleased to advise that it has entered into an option
agreement to acquire an interest in a tenement, which is currently
subject to license application, known as the Western Shaw Project
(ELA 45/4960) (the "Western Shaw Project" or the "Project"),
situated in the Pilbara region of Western Australia.
The Western Shaw Project is considered to have potential for
conglomerate hosted gold deposits, lithium in pegmatites, along
with various base metals.
Highlights:
-- Thor has secured a 120 day option to acquire a 75% interest
in the Western Shaw Project tenement and is to pay an option fee of
A$50,000 (approximately GBP28,000) (the "Option");
-- Due diligence and field reconnaissance work will be
undertaken by the Thor team during the option period;
-- Should Thor elect to exercise the option, and subject to the
grant of the licence application, the acquisition cost payable to
the vendor, Redstone Metals Pty Ltd ("Redstone"), for a 75%
interest in the tenement is A$250,000 (approximately
GBP140,000);
-- Both the option fee and any subsequent acquisition
consideration upon exercise of the option are payable entirely in
Thor shares;
-- Further information with regard to the project, its location
and geological potential will be provided in due course.
Mick Billing, Executive Chairman, commented:
"The Western Shaw Project appears to be an excellent exploration
opportunity and provides Thor with exposure to potential
conglomerate hosted gold and lithium in the Pilbara province in
Western Australia."
"This is the first interest secured in what the Company
considers to be high impact exploration opportunities in Australia
and we look forward to moving this opportunity forward, initially
via due diligence and field reconnaissance."
"We will provide further updates to shareholders with regard to
the Project, the work we undertake and our findings."
Option agreement details:
Thor has entered into an option agreement which gives the
Company the right to acquire a 75% interest in exploration licence
application ELA 45/4960 in the Pilbara region of Western Australia
from a private Australian company, Redstone. An option period of
120 days has been established to enable the company to conduct due
diligence and field reconnaissance
The Company is to pay an option fee to Redstone of A$50,000 in
Thor ordinary shares of 0.01 pence each ("Ordinary Shares"), at a
valuation of 2.5 pence per Ordinary Share, equating to the issue of
1,127,580 new Ordinary Shares. The Option fee is not refundable in
the event that the tenement application is not granted to
Redstone.
Should Thor choose to exercise the Option within the 120 day
Option period then on the later of the 120 day due diligence period
and the date of the grant of the tenement, the consideration
payable will be:
-- A$125,000 in Thor Ordinary Shares, each at a valuation of 2.5
pence per Ordinary Share; plus
-- A$125,000 in Thor Ordinary Shares each at a valuation based
upon the mid-point between 2.5 pence per Ordinary Share and the
volume weighted average price of Thor Ordinary Shares for the 5
trading days prior to the completion of due diligence.
Should Thor exercise its Option, Redstone will hold a 25%
interest in the tenement which will be carried free of cost until
the completion of a Bankable Feasibility Study ("BFS") and Thor
will be responsible for the administration and maintenance of the
tenement. Should a BFS be completed, it is envisaged that Thor and
Redstone would enter into a joint venture arrangement in respect of
the project.
Evidence exists, from satellite imagery, of historical
prospecting and artisanal mining within the project area, however
there has been no systematic appraisal employing modern exploration
techniques. Geological maps of the area have been reviewed by the
Company, and all available relevant data will be assessed during
the Option period.
Settlement and dealings
Application will be made to the AIM market of the London Stock
Exchange ("AIM") for 1,127,580 Thor Ordinary Shares, as payment of
the Option fee, which rank pari passu with the Company's existing
issued Ordinary Shares, to be admitted to trading. Dealings on AIM
are expected to commence at 8:00am on or around 15December 2017
("Admission").
Total Voting Rights
For the purposes of the Financial Conduct Authority's Disclosure
Guidance and Transparency Rules ("DTRs"), following Admission, Thor
will have 584,715,831 Ordinary Shares in issue with voting rights
attached. Thor holds no shares in treasury. This figure of
584,715,831 may be used by shareholders in the Company as the
denominator for the calculations by which they will determine if
they are required to notify their interest in, or a change to their
interest in the Company, under the ASX Listing Rules or the
DTRs.
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
Nick Emerson +44 (0) 1483 SI Capital Ltd Broker
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 1 of the 4 known
deposits.
Thor is also acquiring up to a 60% interest Australian copper
development company Environmental Copper Recovery SA Pty Ltd, which
in turn holds rights to earn up to a 75% interest in the mineral
rights and claims over the portion of the historic Kapunda copper
mine in South Australia recoverable by way of in situ recovery.
Thor also holds a production royalty entitlement from the Spring
Hill Gold project(3) 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 AIM announcement of 22 May 2017 and ASX announcement of 23 May 2017
-- (3) Refer AIM announcement of 26 February 2016 and ASX announcement of 29 February 2016
-- At the date of this announcement gold is trading at approximately A$1,630/oz
This information is provided by RNS
The company news service from the London Stock Exchange
END
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