TIDMTHR
RNS Number : 9302S
Thor Mining PLC
14 July 2020
14 July 2020
THOR MINING PLC
A$1.0 MILLION SPRING HILL ROYALTY SALE
The directors of Thor Mining Plc ("Thor") (AIM, ASX: THR) are
pleased to advise the sale of the Spring Hill gold project royalty
entitlement, subject to approval from the Australian government
Foreign Investment Review Board (FIRB), to AIM quoted Trident
Royalties Plc:
Highlights:
-- Total consideration of A$1.0 million,
-- Initial payment of A$400,000, comprising A$50,000 immediate
payment, followed by A$350,000 on completion, including FIRB
approval,
-- First production milestone payment of A$300,000 upon
cumulative sales reaching 25,000 ounces of gold,
-- Second production milestone payment of A$300,000 upon
cumulative sales reaching 50,000 ounces of gold.
Mick Billing, Executive Chairman of Thor Mining, commented:
"We are very pleased to be able to monetise our royalty rights
to the Spring Hill gold royalty in these challenging times."
"We have active plans to accelerate exploration programs at the
Pilbara gold project, the Kapunda copper and gold investment, and
our new opportunity with uranium and vanadium in the USA, and the
revenue from this sale, combined with existing cash reserves is
expected to meet those programs."
Transaction Details
Thor Mining Plc has executed a Sale and Purchase Agreement (SPA)
with TRR Services Australia Pty Ltd, a 100% owned subsidiary of
Trident Royalties Plc (Trident), for the sale to Trident of 100% of
Thor's royalty entitlement from gold sales from the Spring Hill
gold project.
A director of Thor, Mark Potter, is also a director of Trident
Royalties Plc. Mr Potter has not participated in any decisions is
respect of this transaction.
The terms of the sale provide for immediate payment of A$50,000,
followed by a further payment of A$350,000 upon completion,
including FIRB approval of the transaction, expected to take in the
order of three months.
Two milestone payments, each of A$300,000 are then due on
cumulative production and sale of 25,000 ounces, and 50,000 ounces
of gold respectively. These two milestone payments, at the election
of Trident, may be made via the issue to Thor of Trident ordinary
shares at an issue price equivalent to the volume weighted average
price of Trident shares on the AIM Market over the 5 business days
prior to Trident's election to make such payment in shares. Any
Trident shares issued will not be subject to a minimum hold
period.
Thor hold a residual entitlement to ownership of the licences,
subject to the royalty agreement, in the event that the owner, PC
Gold Pty Ltd, relinquishes ownership, and this entitlement will
remain with Thor.
During 2017, Thor received A$8,124.17 in royalty payment,
resulting from processing of an historic stockpile of ore, with no
subsequent receipts.
The Spring Hill project has no carrying value in the accounts of
Thor Mining as of June 30 2020.
Funds from the sale will be directed towards exploration
activities in the Company's copper, gold and potentially
uranium/vanadium projects.
Further announcements will be made in due course.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Enquiries:
Mick Billing +61 (8) 7324 Thor Mining PLC Executive Chairman
1935
Ray Ridge +61 (8) 7324 Thor Mining PLC CFO/Company Secretary
1935
Samantha Harrison/ +44 (0) 207 383 Grant Thornton Nominated Adviser
Richard Tonthat/ Niall 5100 UK LLP
McDonald
Nick Emerson +44 (0) 1483 SI Capital Ltd Broker
413 500
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 P LC (AI M, A S X: THR) is a r esources comp any
quoted on the AIM M a rket of the London Stock Exchange and on ASX
in Austr alia.
Thor holds 1 0 0% of the ad v anced Molyhil t ungsten p r oject
in t he No rthe rn T e rr ito ry of Aust r alia, for w hich an
updated feasibility study in August 2018(1) suggest ed attr a ctive
retur ns.
Adjacent Molyhil, at Bonya, Thor holds a 40% interest in
deposits of tungsten, copper, and vanadium, including Inferred
Resource estimates for the White Violet and Samarkand tungsten
deposits and the Bonya copper deposit(2).
Thor a lso holds 1 0 0% of t he Pilot Mountain tungst en p
roject in Nevada U SA which has a JORC 20 12 Indicated and Inferred
Res o u rces Estimate(3) on 2 of the 4 k nown deposits. The US
Department of the Interior has confirmed that tungsten, the primary
resource mineral at Pilot Mountain, has been included in the final
list of Critical Minerals 2018.
Thor holds a 25% in ter est Aust r alian copper d evelopment
company EnviroCopper Limited (with rights to increase its interest
to 30%). EnviroCopper Limited holds:
-- rights to earn up to a 7 5% interest in the mineral rights
and claims over the resource on the p o rtion of the historic
Kapunda copper mi ne in South Aust r alia considered recover able
by way of in situ recove ry; and
-- rights to earn up to 75% of the Moonta copper project, also
in South Australia comprising the northern portion of exploration
licence EL5984 and includes a resource estimate for several
deposits considered recover able by way of in situ recove ry .
N ot es
(1) Refer ASX and AIM an n o u ncement of 23 August 2 0 18
(2) Refer ASX and AIM an n o u ncements of 26 November 2 0 18 and 29 January 2020
(3) Refer AIM ann o un cement of 13 December 2018 and ASX ann o
unce ment of 14 December 2018
Refer AIM a nn o un c e m e nt of 10 F e b r u ary 2 0 18 a nd
ASX ann o uncement of 12 February 2 0 18
Refer ASX and AIM an n o u ncement of 15 August 2 0 19
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END
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