The Board of Thor Mining Plc (“Thor” or the “Company”) (AIM, ASX: THR), is pleased to announce the Company has signed a Memorandum of Understanding (MOU) (the “Agreement”) for the vending of its interest in the Kapunda Copper Project into a new copper focused Company, Enviro Copper Limited (“Enviro Copper”).
It is intended that Enviro Copper will seek a listing on a recognised securities exchange in the near term.
· Enviro Copper will be a new, copper focused entity which will hold earn in rights for up to 75% of both the Kapunda Copper Project and the Moonta Copper Project;
· Following the acquisition of the Kapunda and Moonta Copper Project interests Enviro Copper will aim to develop an expanded portfolio of low environmental impact Insitu Recovery (“ISR”) copper opportunities, initially in South Australia;
· Thor Mining PLC to hold up to 30% equity in Enviro Copper prior to any listing activities and eligible Thor Mining Shareholders will hold first option to invest in any listing of the new entity;
· Enviro Copper Limited will have a portfolio comprising;
· Kapunda Copper Project, hosting an ISR amenable Inferred Mineral Resource Estimate of 119,000 tonnes contained copper, also with Australian Government CRCP Grant funding of A$2.85million to demonstrate feasibility;
· Moonta Project, the northern portion of with an ISR amenable Exploration Target of between 238 Mt and 310 Mt at a grade range of 0.18% to 0.23% Copper (between 428,000 and 713,000 tonnes of contained copper). 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;
· A key strategic target will be the timely development of the Kapunda Copper Project into production, demonstrating the operational viability of ISR. This experience will then be applied at the larger scale Moonta Copper Project and to additional new project opportunities acquired by Enviro Copper;
· The new combined entity provides a strategic opportunity to build a large ISR focussed copper exploration, development and production business, initially in Australia;
· Furthermore, by seeking an early listing on a recognised stock exchange, Thor and its partners will be able to demonstrate the value created through a shareholding in the listed equity of Enviro Copper which the directors and our partners believe will be a highly attractive copper investment opportunity;
· Further information to follow, in respect of the establishment of Enviro Copper and the important developments thereafter.
Mr Mick Billing, Executive Chairman, commented:
“The non-invasive production technique of In-situ Recovery of copper has the potential to co-exist without significant disruption to farming and once completed, have little to no impact on future agricultural land use. ISR is an extension of proven technology and has been in use since the 1960’s. With recent technical advances ISR can now offer a lower footprint and is likely to find further application in mineral recovery fields because it can coexist with other land use activities.”
“This is a very exciting development in our copper strategy, potentially adding significant scale to our copper interests by bringing the Moonta Copper Project together with our existing interest in the Kapunda Copper Project, into a potentially large ISR focussed copper business, initially in Australia.”
“While Kapunda is comparatively more advanced, the Moonta project, albeit at an earlier stage, provides potential for a much larger, and longer-term copper production entity”
“The opportunity for eligible Thor Mining shareholders to have a priority investment opportunity in the new vehicle is seen as a core ingredient in the establishment and listing of this new entity.”
“Also, through their shareholding in Thor Mining plc, shareholders we be able to see the demonstrable value of our interest in Enviro Copper and that value will be in our financial accounts as a tradable market valued asset, rather than as merely a project within the Company.”
“Shareholders should expect a range of additional market updates in the near term in respect of the developments at Enviro Copper, and as we take steps forward at Molyhil and Pilot Mountain.”
EnviroCopper projects Location map:
A Memorandum of Understanding (MOU), subject to a 90 day due diligence period, has been executed between Thor Mining, Environmental Copper Recovery Pty Ltd (“ECR”) (holding earn-in rights to 75% of that part of the Kapunda Copper project amenable to ISR), and Environmental Metals Recovery Pty Ltd (holding earning rights, subject to due diligence, to 75% of Moonta copper project comprising the northern portion of exploration licence EL5984), for the merging of the respective interests, and the formation of Enviro Copper Limited, to hold and advance those interests.
Thor Mining PLC holds rights to a 60% interest in ECR for the consideration of A$1.8million in project funding (A$0.45 million funded to date). Under the MOU, Thor will relinquish its interest in ECR and acquire a 25%, pre-listing, interest in Enviro Copper for total funding of A$0.6million (including funds already provided). Further Thor will hold the right to acquire a further 5% seed capital interest in Enviro Copper Limited for consideration of an additional A$0.4 million.
The Agreement is conditional upon execution of a binding Farm-in and Joint Venture Agreement in respect of the Kapunda project, and also upon satisfactory due diligence in respect of the Moonta project acquisition from Andromeda Metals Limited (ASX: ADN) by Environmental Metals Recovery Pty Ltd (refer ADN announcement to ASX dated 19 December 2018).
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