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Thor Mining (LSE:THR) was heavily trading today, prompting the dual-listed gold-and-tungsten-focused company to issue a statement they are not aware of any price sensitive information that needs to be disclosed to the public.
Over 21 million shares switched owners at 3:30 PM, London time, peaking at 1.77 pence in early trading on the Alternative Investment Market, Wednesday, 14th March, or more than 28% rise from yesterday’s close, prompted by speculations revolving around investors of a takeover bid for the company.
Yesterday, authorities of the Australian Securities Exchange enquired from Thor Mining about any pertinent information the company may have had to announce as its shares rose more than 40% in intra-day trading.
Thor Mining said, there was nothing to report other than the definitive feasibility study (DFS) of the Molyhil Tungsten and Molybdenum Project, which is soon due to be released and the strong price of tungsten in international market.
Off Take Agreement
Thor Mining, however, added a further statement today sparking more speculation amongst investors in online forums.
“The directors of the company do not expect any discussions relating to concentrate off-take agreements, and project financing to result in offers for either of these facilities prior to the completion and publication of the results of the Molyhil Definitive Feasibility Study (DFS),” Thor Mining noted.
An online media, nonetheless, reported there were a number of parties Thor Mining is in discussions with regarding offtake agreements and project financing for the Molyhil tungsten and molybdenum project.
An off-take agreement with CITIC Australia Trading Limited, one of China’s state-owned companies, has lapsed that would have ensured a buyer of all molybdenum and tungsten concentrates produced from the Molyhil project.
In its half-year report released last Monday, Thor Mining admitted they have already commenced the move to secure offtake agreements.
“On completion of the DFS, the next stage of activities will involve securing off-take agreements for the concentrates to be produced and finance for the development. These processes have already commenced and it is hoped that these will be secured in time to allow project development to commence in the second half of 2012,” Chief Executive Mark Billing stated on the half-year report.
Company Spotlight
Thor Mining estimates 4.7 million tonnes of resource from the Molyhil Tungsten – Molybdenum Project, located in the Northern Territory of Australia, where the company holds several interests as its base of operation.
Thor Mining is listed on both the Alternative Investment and the Australia Securities Exchange.
References
↑ Thor Mining rebuts media speculation on potential takeover, shares rally 46%
↑ Molyhil Project Overview
↑ Thor Mining Half Year Report
