Thor Mining PLC Appendix 5B Quarterly Cash Flow Report (7510U)

TIDMTHR

RNS Number : 7510U

Thor Mining PLC

31 July 2020

31 July 2020

THOR MINING PLC

("Thor" or the "Company")

Appendix 5B Quarterly Cash Flow Report

The Directors of Thor Mining PLC (AIM, ASX: THR) provide the attached Quarterly Cash Flow Report for the quarter ended 30 June 2020, as lodged today with the ASX, in accordance with ASX Listing Rules.

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.

Enquiries:

 
Mick Billing             +61 (8) 7324     Thor Mining PLC  Executive Chairman 
                           1935 
 Ray Ridge                +61 (8) 7324     Thor Mining PLC  CFO/Company Secretary 
                           1935 
 Samantha Harrison/       [phone]  Grant Thornton   Nominated Adviser 
  Richard Tonthat/ Niall   5100             UK LLP 
  McDonald 
 Nick Emerson             +44 (0) 1483     SI Capital Ltd   Broker 
                           413 500 
 

Updates on the C o m pan y 's activities are regular ly p o sted on Thor's we bsite w w w.th o r m i n i ng .c o m , which includes a facility to regi ster to receive these updates by email, and on the Co m pan y's twitter page @ThorMining.

Ab o u t T hor M i n i ng PLC

Thor Mining P LC (AI M, A S X: THR) is a r esources comp any quoted on the AIM M a rket of the London Stock Exchange and on ASX in Austr alia.

Thor holds 1 0 0% of the ad v anced Molyhil t ungsten p r oject in t he No rthe rn T e rr ito ry of Aust r alia, for w hich an updated feasibility study in August 2018(1) suggest ed attr a ctive retur ns.

Adjacent Molyhil, at Bonya, Thor holds a 40% interest in deposits of tungsten, copper, and vanadium, including Inferred Resource estimates for the White Violet and Samarkand tungsten deposits and the Bonya copper deposit (2).

Thor a lso holds 1 0 0% of t he Pilot Mountain tungst en p roject in Nevada U SA which has a JORC 20 12 Indicated and Inferred Res o u rces Estimate (3) on 2 of the 4 k nown deposits. The US Department of the Interior has confirmed that tungsten, the primary resource mineral at Pilot Mountain, has been included in the final list of Critical Minerals 2018.

Thor holds a 25% in ter est Aust r alian copper d evelopment company EnviroCopper Limited (with rights to increase its interest to 30%). EnviroCopper Limited holds:

-- r ights to earn up to a 7 5% interest in the mineral rights and claims over the resource on the p o r tion of the historic Kapunda copper mi ne in South Aust r alia considered recover able by way of in situ recove ry; and

-- rights to earn up to 75% of the Moonta copper project, also in South Australia comprising the northern portion of exploration licence EL5984 and includes a resource estimate for several deposits considered recover able by way of in situ recove ry .

N ot e s

   (1) Refer  ASX and AIM an n o u ncement  of  23   August   2 0 18 
   (2) Refer  ASX and AIM an n o u ncements  of  26   November   2 0 18 and 29 January 2020 

(3) Refer AIM ann o un cement of 13 December 2018 and ASX ann o unce ment of 14 December 2018

Refer AIM a nn o un c e m e nt of 10 F e b r u ary 2 0 18 a nd ASX ann o uncement of 12 February 2 0 18

   Refer  ASX and AIM an n o u ncement  of  15 August   2 0 19 

Appendix 5B

Mining exploration entity or oil and gas exploration entity

quarterly cash flow report

 
 Name of entity 
-------------------------------------------------- 
 THOR MINING PLC 
 ABN             Quarter ended ("current quarter") 
------------    ---------------------------------- 
 121 117 673               30 JUNE 2020 
                ---------------------------------- 
 
 
 Consolidated statement of cash              Current quarter   Year to date 
  flows                                                         (12 months) 
                                                  $A'000           $A'000 
 1.     Cash flows from operating 
         activities 
 1.1    Receipts from customers                           32             68 
 1.2    Payments for 
        (a) exploration & evaluation 
         (if expensed)                                  (21)           (45) 
        (b) development 
        (c) production 
        (d) staff costs                                 (31)          (188) 
        (e) administration and corporate 
         costs                                         (144)          (877) 
 1.3    Dividends received (see note 
         3) 
 1.4    Interest received                                  2              4 
        Interest and other costs of 
 1.5     finance (leases)                                (1)            (7) 
 1.6    Income taxes paid 
 1.7    Government grants                                  -              - 
 1.8    Other (due diligence costs)                     (84)           (84) 
                                            ----------------  ------------- 
        Net cash from / (used in) 
 1.9     operating activities                          (247)        (1,129) 
-----  -----------------------------------  ----------------  ------------- 
 
 2.     Cash flows from investing 
         activities 
 2.1    Payments to acquire: 
        (a) entities 
        (b) tenements 
        (c) property, plant and equipment 
        (d) exploration & evaluation 
         (if capitalised)                              (111)        (1,024) 
        (e) investments                                    - 
        (f) other non-current assets 
 2.2    Proceeds from the disposal 
         of: 
        (a) entities 
        (b) tenements 
        (c) property, plant and equipment 
        (d) investments                                    -            103 
        (e) other non-current assets 
        Cash flows from loans to other 
 2.3     entities                                          -          (100) 
 2.4    Dividends received (see note 
         3) 
 2.5    Other (R&D Tax Incentive)                          -            222 
                                            ----------------  ------------- 
        Net cash from / (used in) 
 2.6     investing activities                          (111)          (799) 
-----  -----------------------------------  ----------------  ------------- 
 
 3.     Cash flows from financing 
         activities 
        Proceeds from issues of equity 
         securities (excluding convertible 
 3.1     debt securities)                                700          1,590 
 3.2    Proceeds from issue of convertible 
         debt securities 
 3.3    Proceeds from exercise of 
         options 
        Transaction costs related 
         to issues of equity securities 
 3.4     or convertible debt securities                 (55)          (136) 
 3.5    Proceeds from borrowings 
 3.6    Repayment of lease principal                    (14)           (54) 
 3.7    Transaction costs related 
         to loans and borrowings 
 3.8    Dividends paid 
 3.9    Other (provide details if 
         material) 
                                            ----------------  ------------- 
        Net cash from / (used in) 
 3.10    financing activities                            631          1,400 
-----  -----------------------------------  ----------------  ------------- 
 
 4.     Net increase / (decrease) 
         in cash and cash equivalents 
         for the period 
        Cash and cash equivalents 
 4.1     at beginning of period                          154            944 
        Net cash from / (used in) 
         operating activities (item 
 4.2     1.9 above)                                    (247)        (1,129) 
        Net cash from / (used in) 
         investing activities (item 
 4.3     2.6 above)                                    (111)          (799) 
        Net cash from / (used in) 
         financing activities (item 
 4.4     3.10 above)                                     631          1,400 
        Effect of movement in exchange 
 4.5     rates on cash held                             (11)              - 
                                            ----------------  ------------- 
        Cash and cash equivalents 
 4.6     at end of period                                416            416 
-----  -----------------------------------  ----------------  ------------- 
 
 
 5.    Reconciliation of cash and           Current quarter   Previous quarter 
        cash equivalents                         $A'000            $A'000 
        at the end of the quarter 
        (as shown in the consolidated 
        statement of cash flows) to 
        the related items in the accounts 
 5.1   Bank balances                                    416                154 
 5.2   Call deposits 
 5.3   Bank overdrafts 
 5.4   Other (provide details) 
                                           ----------------  ----------------- 
       Cash and cash equivalents 
        at end of quarter (should 
 5.5    equal item 4.6 above)                           416                154 
----  -----------------------------------  ----------------  ----------------- 
 
 
 6.      Payments to related parties of the entity       Current quarter 
          and their associates                                $A'000 
         Aggregate amount of payments to related 
          parties and their associates included in 
 6.1      item 1                                                       91 
                                                        ----------------- 
 6.2     Aggregate amount of payments to related 
          parties and their associates included in 
          item 2 
                                                        ----------------- 
 Note: if any amounts are shown in items 6.1 or 6.2, your quarterly 
  activity report must include a description of, and an explanation 
  for, such payments 
------------------------------------------------------------------------- 
 

The amount at Item 6.1 above represents payments to Directors for Directors fees, the salary paid to the Executive Director, Richard Bradey, and other consulting services provided, including services provided by Mick Billing as CEO.

 
 7.    Financing facilities                 Total facility      Amount drawn 
        Note: the term "facility'          amount at quarter    at quarter end 
        includes all forms of financing           end               $A'000 
        arrangements available to               $A'000 
        the entity. 
        Add notes as necessary for 
        an understanding of the sources 
        of finance available to the 
        entity. 
 7.1   Loan facilities 
                                         -------------------  ---------------- 
 7.2   Credit standby arrangements 
                                         -------------------  ---------------- 
 7.3   Other (please specify) 
                                         -------------------  ---------------- 
 7.4   Total financing facilities 
                                         -------------------  ---------------- 
 
 7.5   Unused financing facilities available at 
        quarter end 
                                                              ---------------- 
 7.6   Include in the box below a description of each facility 
        above, including the lender, interest rate, maturity date 
        and whether it is secured or unsecured. If any additional 
        financing facilities have been entered into or are proposed 
        to be entered into after quarter end, include a note providing 
        details of those facilities as well. 
----  ------------------------------------------------------------------------ 
 
 
 
 8.    Estimated cash available for future operating                       $A'000 
        activities 
       Net cash from / (used in) operating activities 
 8.1    (Item 1.9)                                                           (247) 
 8.2   Capitalised exploration & evaluation (Item                            (111) 
        2.1(d)) 
 8.3   Total relevant outgoings (Item 8.1 + Item                             (358) 
        8.2) 
 8.4   Cash and cash equivalents at quarter end                                416 
        (Item 4.6) 
 8.5   Unused finance facilities available at quarter                            - 
        end (Item 7.5) 
 8.6   Total available funding (Item 8.4 + Item                                416 
        8.5) 
       Estimated quarters of funding available 
 8.7    (Item 8.6 divided by Item 8.3)                                        1.16 
----  ----------------------------------------------------------------- 
 8.8   If Item 8.7 is less than 2 quarters, please provide answers 
        to the following questions: 
       1. Does the entity expect that it will continue to have 
        the current level of net operating cash flows for the 
        time being and, if not, why not? 
      ---------------------------------------------------------------------------- 
       Answer: The net operating cashflows for the next quarter 
        are expected to be less than or consistent with the most 
        recent quarter ending 30 June 2020. 
      ---------------------------------------------------------------------------- 
       2. Has the entity taken any steps, or does it propose 
        to take any steps, to raise further cash to fund its operations 
        and, if so, what are those steps and how likely does it 
        believe that they will be successful? 
      ---------------------------------------------------------------------------- 
                 Answer: On the 16 July 2020 Thor announced the sale of 
                  it's Spring Hill gold project royalty entitlement, conditional 
                  on approval from the Australian Government Foreign Investment 
                  Review Board (FIRB). Initial payment of $50,000 will be 
                  followed by $350,000 upon completion, including FIRB approval. 
                  A further two payments of $300,000 each are subject to 
                  milestones associated with the Spring Hill gold project, 
                  the first milestone being sales of 25,000 ounces of gold, 
                  and the second milestone being the sale of a further 25,000 
                  ounces of gold. 
                  The Company also expects to lodge a claim for the Research 
                  & Development Tax Incentive (RDTI) in the coming quarter. 
                  The quantum of the RDTI is expected to be in the vicinity 
                  of $150,000. 
      ---------------------------------------------------------------------------- 
       3. Does the entity expect to be able to continue its operations 
        and to meet its business objectives and, if so, on what 
        basis? 
      ---------------------------------------------------------------------------- 
       Answer: The Company expects to continue operations and 
        to meet its business objectives on the basis of the imminent 
        finalisation of the sale of the Spring Hill royalty, the 
        expected RDTI claim, together with other alternatives 
        being considered to raise funds. 
      ---------------------------------------------------------------------------- 
 

Compliance statement

1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

   2        This statement gives a true and fair view of the matters disclosed. 
   Date:                31 July 2020........................................................ 

Authorised by: ...By the Board...........................................................

(Name of body or officer authorising release - see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee - eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

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July 31, 2020 04:01 ET (08:01 GMT)