PURCHASE AGREEMENT – BONYA TUNGSTEN & COPPER PROSPECTS
SIGNIFICANT BOOST FOR MOLYHIL
The Board of Thor Mining Plc (“Thor”) (AIM, ASX: THR) is pleased to advise the execution of a binding term sheet for Thor to acquire from Rox Resources Limited (ASX: RXL) an interest 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 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 is outstanding news for the Molyhil development. The potential to increase both the scale and the life of the proposed Molyhil operation makes this acquisition compelling. The proximity of the Bonya deposits to Molyhil should add significantly to the projected economic returns, dovetailing with our commercialisation strategy for Molyhil.”
“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:
Agreement Structure and Commercial Terms
Under the terms of the agreement, Thor can 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. The issue of these securities is expected to be within existing approval levels under ASX listing rule LR7.1.
The acquisition agreement is subject to a 45 day pre-emptive right by Arafura Resources Limited (ASX:ARU) the 60% holder of EL 29701 to match the offer by Thor. Other conditions precedent include normal approval and stamping provisions of the Northern Territory government.
Under the terms of the existing Joint Venture Agreement between Rox and Arafura, Rox is the manager of the Joint Venture with both parties 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.
All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned