The directors of Thor Mining Plc (“Thor”) (AIM, ASX: THR) are pleased to advise the sale of the Spring Hill gold project royalty entitlement, subject to approval from the Australian government Foreign Investment Review Board (FIRB), to AIM quoted Trident Royalties Plc:
· Total consideration of A$1.0 million,
· Initial payment of A$400,000, comprising A$50,000 immediate payment, followed by A$350,000 on completion, including FIRB approval,
· First production milestone payment of A$300,000 upon cumulative sales reaching 25,000 ounces of gold,
· Second production milestone payment of A$300,000 upon cumulative sales reaching 50,000 ounces of gold.
Mick Billing, Executive Chairman of Thor Mining, commented:
“We are very pleased to be able to monetise our royalty rights to the Spring Hill gold royalty in these challenging times.”
“We have active plans to accelerate exploration programs at the Pilbara gold project, the Kapunda copper and gold investment, and our new opportunity with uranium and vanadium in the USA, and the revenue from this sale, combined with existing cash reserves is expected to meet those programs.”
Thor Mining Plc has executed a Sale and Purchase Agreement (SPA) with TRR Services Australia Pty Ltd, a 100% owned subsidiary of Trident Royalties Plc (Trident), for the sale to Trident of 100% of Thor’s royalty entitlement from gold sales from the Spring Hill gold project.
A director of Thor, Mark Potter, is also a director of Trident Royalties Plc. Mr Potter has not participated in any decisions is respect of this transaction.
The terms of the sale provide for immediate payment of A$50,000, followed by a further payment of A$350,000 upon completion, including FIRB approval of the transaction, expected to take in the order of three months.
Two milestone payments, each of A$300,000 are then due on cumulative production and sale of 25,000 ounces, and 50,000 ounces of gold respectively. These two milestone payments, at the election of Trident, may be made via the issue to Thor of Trident ordinary shares at an issue price equivalent to the volume weighted average price of Trident shares on the AIM Market over the 5 business days prior to Trident’s election to make such payment in shares. Any Trident shares issued will not be subject to a minimum hold period.
Thor hold a residual entitlement to ownership of the licences, subject to the royalty agreement, in the event that the owner, PC Gold Pty Ltd, relinquishes ownership, and this entitlement will remain with Thor.
During 2017, Thor received A$8,124.17 in royalty payment, resulting from processing of an historic stockpile of ore, with no subsequent receipts.
The Spring Hill project has no carrying value in the accounts of Thor Mining as of June 30 2020.
Funds from the sale will be directed towards exploration activities in the Company’s copper, gold and potentially uranium/vanadium projects.
Further announcements will be made in due course.
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
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