TIDMTHR
RNS Number : 0635X
Thor Energy PLC
18 December 2023
18 December 2023
Thor Energy PLC
("Thor" or the "Company")
EnviroCopper Ltd to Acquire Alford West Tenement
The directors of Thor Energy Plc ("Thor") (AIM, ASX: THR, OTCQB:
THORF) are pleased to announce the signing of an agreement (the
"Agreement") between EnviroCopper Ltd ("ECL") and Andromeda Metals
Ltd ("Andromeda"), to acquire the Exploration Licence 5984 on the
Yorke Peninsula, South Australia ( Figure 1 and Figure 2 ). Thor
currently a holds 30% equity interest in ECL.
Agreement Highlights:
-- Consolidation of the Alford West Joint Venture ("JV")
(In-Situ Recovery JV) and other ISR amenable targets within
Exploration Licence 5984 with 100% of the ownership transferring to
ECL.
-- Andromeda is to receive 5% of the current ECL capitalisation
(203,008 shares), plus A$50,000 in cash.
-- Andromeda will also receive deferred consideration as a 10%
share of any successful mining operations 'Royalty Tenement
Operating Cashflow' on the Alford West Project area (not exceeding
A$15m) and Moonta Project area (not exceeding A$15m).
-- Upon successful completion of a Site Environmental Lixiviant
Test ("SELT"), Andromeda will be issued a further 2.5% of ECL
capitalisation (101,504 shares).
-- Once a mining lease is granted, Andromeda will receive a
further cash payment of A$150,000 with royalty payments from
operating cash flow.
-- Thor currently holds 30% equity in ECL, with the initial 5%
payment to Andromeda diluting Thor to 28.6%.
Figure 1: Alford Project Area
Nicole Galloway Warland, Managing Director of Thor Energy,
commented:
"The consolidation of EL 5984 allows ECL to actively pursue
In-Situ Recovery copper investigations at the Alford West Project
area whilst considering new discoveries across the tenement. Thor
looks forward to ECL expanding its exploration options for ISR of
copper, as well as advancing site investigations at the Alford West
Project.
"As the Alford Copper Belt extends through both Thor's Alford
East project, and the Alford West area, all investigative
activities are a positive advancement to the In-Situ Recovery
assessment of the area."
Figure 2: Alford Copper Belt extensions through Alford East
Project and the Alford West Area
Tenement Sale and Purchase Agreement
The proposed split of EL 5984 ( Figure 1 ) shows the New
Tenement Area, consisting of the Alford Project Area, Moonta
Project Area, and the Tenement Area portion to be retained by
Andromeda.
In consideration for the Andromeda sale of the tenement (EL5984)
and assisting with the split and renewal of the two new tenements,
ECL will:
1) Issue to Andromeda and/or its nominee 203,008 fully paid
ordinary shares in the capital of ECL ("Completion Share
Consideration")
2) Pay A$50,000 in cash to Andromeda;
3) Grant the Alford Project Area Royalty to Andromeda on the
terms and conditions set out in the Agreement as follows: " Royalty
Holder will pay an amount equal to 10%, of Royalty Tenement
Operating Cashflow from the Royalty Tenement, but which payments of
Royalty in total shall not exceed $15,000,000 ( Maximum Sum ), and
on the date that payment of all Royalties is equal to the Maximum
Sum ( Expiry Date ); and
4) Grant the Moonta Project Area Royalty to the Seller on the
terms and conditions set out in the Agreement as follows: "The
Royalty Tenement Owner will pay the Royalty Holder an amount equal
to 10%, exclusive of GST, of Royalty Tenement Operating Cashflow
from the Royalty Tenement, but which payments of Royalty in total
shall not exceed A$15,000,000 (Maximum Sum), and on the date that
payment of all Royalties is equal to the Maximum Sum."
Within 5 Business Days of a successful [1] SELT completion
within the Project Area, at the sole discretion of the Andromeda,
either:
5) Issue to Andromeda and/or its nominee 101,504 fully paid
ordinary shares in the capital of ECL ("Deferred Consideration
Shares"); or
6) Pay A$100,000 in cash to Andromeda
Within 5 Business Days of the first Mining Lease to be granted
to ECL, its related body corporate, nominee, or assignee (including
subject to the Moonta Porphyry Joint Venture Agreement, to the
extent applicable) in respect of an area within the Project Area
will:
7) Pay A$150,000 in cash to the Andromeda or as Andromeda may direct in writing
Completion of Agreement is subject to:
-- Shareholders of ECL entering into a Shareholder's Deed in an agreed form; and
-- A deed of assignment and assumption being entered into in
relation to the Moonta Porphyry Joint Venture, including any third
party consents and waivers that may be required
The Board of Thor Energy Plc has approved this announcement and
authorised its release.
For further information, please contact:
Thor Energy PLC
Nicole Galloway Warland, Managing Director Tel: +61 (8) 7324
1935
Ray Ridge, CFO & Company Secretary
Tel: +61 (8) 7324
1935
WH Ireland Limited (Nominated Adviser and Tel: +44 (0) 207
Joint Broker) 220 1666
Antonio Bossi / Darshan Patel / Isaac Hooper
SI Capital Limited (Joint Broker) Tel: +44 (0) 1483
413 500
Nick Emerson
Yellow Jersey (Financial PR) thor@yellowjerseypr.com
Sarah Hollins / Shivantha Thambirajah / Tel: +44 (0) 20
Bessie Elliot 3004 9512
Updates on the Company's activities are regularly posted on
Thor's website: https://thorenergyplc.com which includes a facility
to register to receive these updates by email, and on the Company's
X page @thorenergyplc
About Thor Energy Plc
The Company is focused on uranium and energy metals that are
crucial in the shift to a 'green' energy economy. Thor has a number
of highly prospective projects that give shareholders exposure to
uranium, nickel, copper, lithium and gold. Our projects are located
in Australia and the USA.
Thor holds 100% interest in three uranium and vanadium projects
(Wedding Bell, Radium Mountain and Vanadium King) in the Uravan
Belt in Colorado and Utah, USA with historical high-grade uranium
and vanadium drilling and production results.
At Alford East in South Australia, Thor has earnt an 80%
interest in oxide copper deposits considered amenable to extraction
via In Situ Recovery techniques (ISR). In January 2021, Thor
announced an Inferred Mineral Resource Estimate (1) . Thor also
holds a 30% interest in Australian copper development company
EnviroCopper Limited, which in turn holds rights to earn up to a
75% interest in the mineral rights and claims over the resource on
the portion of the historic Kapunda copper mine and the Alford West
copper project, both situated in South Australia, and both
considered amenable to recovery by way of ISR. (2)(3)
Thor holds 100% of the advanced Molyhil tungsten project,
including measured, indicated and inferred resources , in the
Northern Territory of Australia, which was awarded Major Project
Status by the Northern Territory government in July 2020. Thor
executed a A$8m Farm-in and Funding Agreement with Investigator
Resources Limited (ASX: IVR) to accelerate exploration at the
Molyhil Project on 24 November 2022.(6)
Adjacent to Molyhil, at Bonya, Thor holds a 40% interest in
deposits of tungsten, copper, and vanadium, including Inferred
resource estimates for the Bonya copper deposit, and the White
Violet and Samarkand tungsten deposits. Thor's interest in the
Bonya tenement EL29701 is planned to be divested as part of the
Farm-in and Funding agreement with Investigator Resources
Limited.(6)
Thor owns 100% of the Ragged Range Project, comprising 92 km(2)
of exploration licences with highly encouraging early-stage gold
and nickel results in the Pilbara region of Western Australia.
Notes
(1)
https://thorenergyplc.com/investor-updates/maiden-copper-gold-mineral-resource-estimate-alford-east-copper-gold-isr-project/
(2)
www.thorenergyplc.com/sites/thormining/media/pdf/asx-announcements/20172018/20180222-clarification-kapunda-copper-resource-estimate.pdf
(3)
www.thorenergyplc.com/sites/thormining/media/aim-report/20190815-initial-copper-resource-estimate---moonta-project---rns---london-stock-exchange.pdf
(4)
https://thorenergyplc.com/investor-updates/molyhil-project-mineral-resource-estimate-updated/
(5)
www.thorenergyplc.com/sites/thormining/media/pdf/asx-announcements/20200129-mineral-resource-estimates---bonya-tungsten--copper.pdf
(6)
https://thorenergyplc.com/wp-content/uploads/2022/11/20221124-8M-Farm-in-Funding-Agreement.pdf
[1] Successful - defined in Agreement as economically successful
completion of SELT with decision to advance the Project.
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END
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