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.
· 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 £28,000) (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 £140,000);
· 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.
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