The Board of Thor Mining Plc (“Thor” or the “Company”) (AIM, ASX: THR), is pleased to report receipt of A$8,124 in the form of a royalty payment from production of gold at the Spring Hill gold project in Australia.
On 26 February 2016, Thor announced the sale of its Spring Hill Gold project for A$3.5million. In addition to the sale proceeds, Thor holds a production royalty entitlement of:
· A$6 per ounce of gold produced from the Spring Hill tenements where the gold produced is sold for up to A$1,500 per ounce; and
· A$14 per ounce of gold produced from the Spring Hill tenements where the gold produced is sold for amounts over A$1,500 per ounce.
Thor was previously the recipient of loan funds secured in part against the Spring Hill project. These loan funds were repaid in full following the completion of the sale of Thor’s interest in Spring Hill and that lender holds an entitlement to 5% of all royalty proceeds received by Thor from Spring Hill. The initial royalty of A$8,124 received by Thor is stated net of the 5% entitlement of the lender.
During the June 2017 quarter, the operator at Spring Hill produced 610.84 ounces of gold, via processing historic ore stockpiles.
Mr Mick Billing, Executive Chairman of Thor:
“We are delighted to receive the first of what is expected to be a series of royalty payments from gold production at Spring Hill.
“The project operator is continuing to advance regulatory approval to commence normal mining and processing activities and we look forward to updating investors with progress as news becomes available”.
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