Thor Mining PLC Spring Hill Royalty Sale (9302S)

TIDMTHR

RNS Number : 9302S

Thor Mining PLC

14 July 2020

14 July 2020

THOR MINING PLC

A$1.0 MILLION SPRING HILL ROYALTY SALE

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:

Highlights:

   --    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."

Transaction Details

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.

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 Company's activities are regularly posted on Thor's website www.thormining.com , which includes a facility to register to receive these updates by email, and on the Company's twitter page @ThorMining.

About Thor Mining 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:

-- rights to earn up to a 7 5% interest in the mineral rights and claims over the resource on the p o rtion 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 es

   (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 

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July 14, 2020 02:45 ET (06:45 GMT)