Thor Mining PLC (ASX:AIM:THR) Update on Bonya Tungsten & Copper Prospect

 

THOR MINING PLC

BONYA TUNGSTEN & COPPER PROSPECTS – ADJACENT MOLYHIL

ARAFURA RESOURCES DECLINES TO EXERCISE ITS PRE-EMPTIVE RIGHT

The Board of Thor Mining Plc (“Thor”) (AIM, ASX: THR) is pleased to provide an update to the announcement on 28 March 2018, of the conditional acquisition of an interest, from Rox Resources Limited (ASX: RXL), in tenements hosting outcropping tungsten deposits in the Bonya Creek area, along with a high grade copper deposit, approximately 30 kilometres from Molyhil in Australia’s Northern Territory.

Thor have been advised that the 60% holder of exploration licence EL29701, Arafura Resources Limited (Arafura) (ASX: ARU), has declined to exercise its pre-emptive right to match the offer by Thor, and the Company will now proceed with the acquisition.  On completion of the acquisition and execution of the proper assumption documentation, subject to normal Northern Territory stamping and ministerial approval processes, Thor and Arafura will be in Joint Venture in respect of this tenement with Thor holding a 40% interest.

Highlights

·     Thor to acquire 40% interest in exploration licence EL29701 which hosts 13 outcropping tungsten deposits, plus 1 copper deposit with exciting previous drilling results;

·     Thor to acquire 100% interest in exploration licence EL29599 considered prospective for copper exploration;

·     Project area exploration target* of 3.0 – 4.9 million tonnes @ 0.3% – 0.5% WO₃;

·     Total consideration of A$550,000 in Thor shares, subject to 90day trading restriction;

·     Multiple substantiated walk up drill targets;

·     Project area boundary approximately 20kms from Molyhil;

·     No tungsten exploration on the project area in the past 35+ years.

*Exploration Targets are conceptual in nature and there has been insufficient exploration to define a Mineral Resource under the JORC Code and it is uncertain if further exploration will result in the determination of a Mineral Resource.

Mick Billing, Executive Chairman, commented:

“This latest news on the Bonya acquisition is great news for the Molyhil development, and for Thor investors.    The proximity of the Bonya deposits to Molyhil, and the potential to boost both scale and operating life should add significantly to the projected economic returns”.

“Historic drilling and trenching has confirmed tungsten mineralisation on several deposits at Bonya, however there has been no tungsten focussed exploration on the tenement in over 35 years.  Provided some of these known prospects mature, along with others which we expect to develop, it is more than likely that Molyhil production life and throughput volume should increase substantially.”

“The potential for small but high grade copper deposits is also very attractive with the proposed processing plant at Molyhil highly likely to be also suitable for copper flotation”

A link to Map of Bonya prospects and Proximity to Molyhil is shown below:

http://www.thormining.com/-/thor/lib/images/maps/15-001-1A%20Bonya%20Exploration%20Targets.jpg 

Agreement Structure and Commercial Terms

Under the terms of the agreement, Thor will, for consideration of A$550,000 in fully paid Thor shares, acquire

·        a 40% interest in Exploration Licence EL29701; and

·        100% interest in Exploration Licence EL29599.

The consideration shares are to be valued according to the average of:

·     the 5 day VWAP (volume weighted average price) on ASX for the 5 days preceding execution of the terms sheet,

·     and the 5 day VWAP for the 5 days preceding satisfaction of all conditions precedent to the sale. 

A further announcement will be made once the acquisition is complete and the number of shares to be issued has been determined.

The issue of these securities is expected to be within existing approval levels under ASX listing rule LR7.1.

Under the terms of the existing Joint Venture Agreement between Rox and Arafura, both parties are required to contribute to exploration activities.  In the event that one party elect not to contribute to agreed exploration programs then normal dilution provisions apply.

Full RNS Release 

 


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