The directors of Thor Mining Plc (“Thor” or the “Company”) (AIM, ASX: THR) are pleased to advise that the Company has increased its equity interest in private Australian company EnviroCopper Limited (“ECL”) to 30%.
Thor has paid the final tranche A$185,000 in completion of the A$400,000 additional earn-in agreement, and has provided notice to ECL to exercise its right to the increase its holding. Thor is to be issued additional shares in ECL to take the equity holding to 30%, with these additional shares expected to be issued by 16 November 2020.
· Thor increases its equity in EnviroCopper Ltd to 30%
· EnviroCopper Limited has earned its initial farm-in interest in 50% of the Kapunda project, and has provided notice that it will now proceed to a 75% interest
· A very active period of field activities including drilling at both Kapunda and Alford West, are scheduled over the next six months
Mick Billing, Executive Chairman of Thor Mining, commented:
“This additional investment in EnviroCopper represents outstanding value for Thor and Thor investors.”
“Through EnviroCopper we hold interests in resources totalling 233,000 tonnes of copper insitu (Table A, & Table B) with substantial upside for copper and the potential to also extract gold.”
“Global copper prices have improved strongly in recent weeks and, with the optimism that a COVID 19 vaccine may be available in 2021, this rebound shows signs of the acceleration which comes with economic recovery.”
“EnviroCopper have scheduled a host of field activities at both Kapunda and Alford West during the next few months, expected to add considerable value to each project. While the additional investment by Thor will be utilised on some of this work, the bulk of the expenditure requirement through to mid-2021 is funded, particularly at Kapunda, by the previously reported Australian government grant.”
EnviroCopper Limited has entered into an agreement to earn, in two stages, up to 75% of the rights over metals which may be recovered via in-situ recovery (“ISR”) contained in the Kapunda deposit from Australian listed company, Terramin Australia Limited (“Terramin” ASX: “TZN”), and rights to 75% of the Alford West copper project comprising the northern portion of exploration licence EL5984, held by Andromeda Metals Limited (ASX:ADN).
Information about EnviroCopper Limited and its projects can be found on the EnviroCopper website:
During 2018, the Australian Government Ministry for Science, Jobs and Innovation announced an offer to ECR for research funding of A$2,851,303 for the Kapunda In-Situ Copper and Gold Recovery Trial. Funds from this grant are now expected to cover the major portion of costs of the program scheduled to mid-2021.
Table A: Kapunda Resource Summary 2018 (Reported 12 February 2018)
• EnviroCopper hold 50% in this resource and are earning a 75% interest, and Thor now holds 30% of EnviroCopper.
• All figures are rounded to reflect appropriate levels of confidence. Apparent differences may occur due to rounding.
• Cut-off grade used of 0.05% Cu.
• The Company is not aware of any information or data which would materially affect this previously announced resource estimate, and all assumptions and technical parameters relevant to the estimate remain unchanged.
Table B: Alford West Copper Mineral Resource Estimate (Reported 15 August 2019)
· Figures are reported gross and there is no net attributable to Thor. EnviroCopper are earning a 75% interest in this resource, and Thor holds 30% of EnviroCopper.
· Figures are rounded to reflect appropriate levels of confidence. Apparent differences may occur due to rounding.
· Cut-off grade used of 0.05% Cu.
· The Company is not aware of any information or data which would materially affect this previously announced resource estimate, and all assumptions and technical parameters relevant to the estimate remain unchanged.
Scheduled Project Activities
During the next three to six months Thor expects a particularly active period of field activities by ECL on these projects, with results being reported from:
· Additional borehole hydrogeological testing, in follow up of 2019 hydrogeological work
· Gold testing drilling
· Site Environmental Lixiviant Test (SELT) commencement.
· Initial borehole hydrogeological testing to measure flow & connectivity characteristics within the deposit.
FURTHER INFORMATION ON ENVIROCOPPER LIMITED
Thor has paid the final tranche A$185,000 in completion of the A$400,000 additional funding requirement. As per the agreement with ECL, Thor’s advance is being converted into new shares in ECL, increasing Thor’s interest by 5% to a total of 30% of ECL.
For the year to 30 June 2020, ECL reported an unaudited net profit of approximately A$557k (approximately £308k) and net assets of A$1,295k (approximately £716k).
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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