The board of Thor Mining PLC (“Thor” or the “Company”) (AIM, ASX: THR), is pleased to provide an update on the due diligence activities in process in respect of the option agreement to acquire an interest in a tenement, which is currently subject to license application, known as the Western Shaw Project (ELA 45/4960) (the “Western Shaw Project” or the “Project”), situated in the Pilbara region of Western Australia.
Highlights:
· Due diligence programme now underway;
· Arrangements have been settled for an initial helicopter assisted reconnaissance visit to the tenement area during January;
· The objective is to put experienced geologists “boots on the ground” at multiple locations along three separate north-south traverses to confirm the existence of prospective lithologies within the tenement which, if successful would be subject to further detailed ground based evaluation;
· The target geology, identified from desktop review of historic records, includes potentially lithium bearing pegmatites, nickel bearing ultra-mafics and basal conglomerate hosted gold.
Mick Billing, Executive Chairman, commented:
“The Western Shaw Project appears to be an excellent exploration opportunity and provides Thor with exposure to potential conglomerate hosted gold and lithium in the Pilbara province in Western Australia.”
“This first site visit for field reconnaissance is an important part of our initial assessment.”
“We will provide further updates of progress and findings to shareholders at the earliest appropriate opportunity.”
Option Agreement Summary
On 8 December 2017, Thor announced the option agreement to acquire a 75% interest in the Western Shaw project, briefly summarised below:
· Thor secured a 120 day option to acquire a 75% interest in the Western Shaw Project tenement via payment of an option fee of A$50,000 (approximately £28,000) (the “Option”);
· Should Thor elect to exercise the option, and subject to the grant of the licence application, the acquisition cost payable to the vendor, Redstone Metals Pty Ltd (“Redstone”), for a 75% interest in the tenement is A$250,000 (approximately £140,000);
· Both the option fee and any subsequent acquisition consideration upon exercise of the option are payable entirely in Thor shares;
