Tail Benefit Variation and Transaction Completion
The directors of Thor Mining Plc (“Thor” or “Thor Mining”) (AIM, ASX: THR, OTCQB: THORF) are pleased to advise that Power Metal Resources Plc (“Power Metal”) (AIM: POW) and Thor have agreed to a Variation of Tail Benefit (“Variation”) as part of the Sale Agreement of the Pilot Mountain Tungsten Project (“Pilot Mountain”) in Nevada, USA, as previously announced on 1 November 2021.
- In consideration for the Variation,
· Power Metal will pay Thor Mining £50,000.00 (A$94,126.00) in cash within 7 days of 24 January 2022 (“Variation Date”); and
· within 14 days of the Variation Date, Power Metal will issue to Thor Mining 4,000,000 freely tradable new ordinary shares of Power Metal of 0.1p at a deemed issue price of 2.5p (total value of £100,000).
- Original Tail Benefit comprised a US$500,000 milestone payment, payable in Power Metal Ordinary Shares, if Golden Metal Resources Limited, A subsidiary of Power Metal, publishes a JORC or 43-101 compliant resource at Pilot Mountain which increases against current declared levels by 25% across total indicated and inferred categories within two years.
All other terms of the Sale Agreement remain the same as announced on 1 November 2021 and the announcement can be viewed at the following link:
Additionally, Power Metals have confirmed the completion of their due diligence and therefore the sale of Pilot Mountain completed on 24 January 2022.
Nicole Galloway Warland, Managing Director of Thor Mining, commented:
“Thor are pleased with this tail benefit variation, although the payment is less, there is no risk to Thor, with THR receiving the cash and share payment upfront.
This finalises the Pilot Mountain strategic divestment allowing Thor to focus on our critical minerals, uranium and gold projects.”
This announcement is authorised for release to the market by the Board of Directors.
– Ends –
For further information on the Company, please visit www.thormining.com or contact the following:
Thor Mining PLC
Nicole Galloway Warland, Managing Director
Ray Ridge, CFO / Company Secretary
Tel: +61 (8) 7324 1935
Tel: +61 (8) 7324 1935
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