The directors of Thor Mining Plc (“Thor” or the “Company”) (AIM, ASX: THR) are pleased to advise that it has signed a non-binding Term Sheet for the acquisition of additional licence areas adjacent to Ragged Range in the Pilbara region of Western Australia.
· Two additional licences (E46/1340 and E46/1354 (application) include areas over, and surrounding, historical small scale gold and copper mines.
· Total Thor Pilbara licence area, including 73 sq kms under application, totals 213 sq kms.
· New licence area increases the Thor exposure to potential granite contact deposits, complementing the mafic/ultra mafic contact exposure dominated by the 13 kilometre gold zone previously reported(THR:ASX 21 October 2020).
· The newly acquired tenure is considered highly prospective for shear hosted gold mineralization along the granite contacts to the north and hydrothermal copper mineralization associated with the felsic porphyries intruding the mafic Euro Basalts in the north- east.
· Anomalous historic stream sediments include up to 76ppb gold with 240ppm copper (Sample 2430)1
· Data review over the newly acquired ground continuing, with field programs planned for early 2021.
· Airborne magnetics data has been received with magnetic interpretation in progress.
· Stream sediment samples from the October field program are still at the laboratory with results now anticipated early December.
1 Open File Report A050141-Great Southern Mines -Surrender Report
Mick Billing, Executive Chairman of Thor Mining, commented:
“We are delighted to be able to add to our holdings adjacent to Ragged Range where we have made very encouraging progress this year.”
“The eastern portion of the newly acquired area hosts sites of historical small scale gold and copper mining, however there has been very little modern day exploration of this area.”
“We expect shortly to have assays from the October sampling program where we also recovered visible gold via panning, and are also working on interpretation of the data from the recently completed airborne magnetic survey, which is aimed at refining gold and nickel drill program planning.”
A map showing the acquired licence area, and its proximity to the Thor Ragged Range project can be accessed from the Thor website via the attached link:
Thor have executed a non-binding Term Sheet with Redstone Metals Pty Ltd and associated parties to acquire a 100% interest in each of E46/1340, and E46/1354 (under application). Acquisition consideration comprises:
· Initial Consideration
§ 12.5 million ordinary shares in Thor;
§ 8.333 million options to acquire Thor shares @ A$ 3.0cents, expiring 10 November 2022;
§ Thor to transfer 100% of its interest in E52/3679 (WA licence under application with a value in the Thor accounts of approximately A$4,400);
§ Net Smelter Royalty of 1% from production from each tenement area acquired.
· Milestone consideration
o Upon three drill intercepts of, or equivalent to, 3 metres @ 2.0grams/tonne, Thor pay further consideration of A$250,000, as follows.
§ 50% in Thor shares valued @ 2.0cents/share, and
§ 50% in cash
The parties have agreed, using reasonable commercial endeavours, to negotiate and execute a binding Sale and Purchase Agreement (SPA) within 30 days of the execution of the Term Sheet for this transaction.
On execution of the SPA, the Company will provide further advice, including details of the share allotment, and the effect on voting rights and the impact on total issued shares.
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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