Further to its announcement of 29 March 2018, the Board of Thor Mining Plc (“Thor” or the “Company”) (AIM, ASX: THR), is pleased to provide an update on the sale of the Company’s interest in USA Lithium Pty Ltd (“USA Lithium”).
The Company is pleased to note the announcement today on ASX that Hawkstone Mining Limited (“Hawkstone”) (ASX: HWK) has completed due diligence and is proceeding with the acquisition of 100% of the shares of USA Lithium.
Details of the release today by Hawkstone can be viewed via the link below:
Mick Billing Executive Chairman of Thor Mining commented: “We are delighted with the positive progress being made toward the sale of USA Lithium.”
“Thor has three key strategic tungsten and copper projects and the consideration received from this transaction will increase our working capital cash and tradable securities to approaching £2million”
“This working capital position means the Company is funded well into 2019 based on current operational plans giving the Company an ability to progress all three key projects and deliver progress on same to the market.”
Hawkstone proposes to acquire 100% of the shares on issue in USA Lithium for the consideration of 262,500,000 fully paid shares (including 12,500,000 non-refundable shares as option consideration) in Hawkstone. The agreement is subject to securing necessary shareholder approvals (scheduled for late May 2018).
Assuming the transaction with Hawkstone completes, Thor will be issued 15,625,000 fully paid shares in Hawkstone on completion. Hawkstone shares closed at A$0.039 at the close of trading today on ASX, valuing this interest at A$609,375.00, less any consideration payable as described below.
Under the agreement by which Thor acquired its interest in USA Lithium from Pembridge Resources PLC in June 2017, Thor is required to pay Pembridge 10% of any consideration for the sale of its interest in USA Lithium, if that interest is sold within 12 months of the acquisition. If such sale completes between 12 months and 24 months of the acquisition, then Thor is required to pay Pembridge 5% of the sale proceeds.
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