Thor Mining PLC - Project Acquisition Agreement. A$970,000 Fundraise
US URANIUM & VANADIUM PROJECT ACQUISITION AGREEMENT &
The directors of
The directors are also pleased to advise of a strategic financing to allow acceleration of the Company's project interests, including work on these new projects.
· Non-binding terms sheet executed providing Thor with a 30 day exclusivity period to conduct due diligence, secure necessary approvals, and execute formal agreements.
· Nearby processing plant which has historically taken third party ore for toll treatment located within economic transport area potentially reduces environmental and financial development hurdles.
· Thor has considerable operational experience in the
· Acquisition consideration comprises
- Future payments through the issue of performance rights, over three stages, to receive up to 102 million Ordinary Shares subject to achievement of project milestones.
· The Company has raised gross proceeds of
· Strong support was also received from a broad range of new institutional and sophisticated investors in a heavily oversubscribed placing, significantly strengthening the Company's share register.
· Company directors
· In further support of the Company,
· The vendors of
· Placees to receive, subject to shareholder approval, one option for each two placing shares, to subscribe for a further new Ordinary Share at A1.0 cents per share ("Option"), valid for three years from the date of issue. The Company will seek to list these options, subject to0 securing approval.
· Funds raised to be devoted to exploration activities at the uranium and vanadium projects subject to this acquisition, further investment in
"This is an outstanding opportunity for Thor and its investors. Deposits from the Uravan Mineral Belt have produced large quantities of high grade uranium and vanadium ore over decades, until the early 1980's when the global uranium price collapsed."
"We have a
A map showing the general project location is on the Company website & can be view via the following link:
The Company has acquired an exclusive option to acquire 100% of the shares in
Standard holds 199 contiguous
The Uravan Mineral Belt and adjacent uranium-vanadium mining districts of the Colorado Plateau are reported to have produced, over the past 100 years, in excess of 85million lbs U3O8 and over 660 million lbs of V2O5² from Salt Wash ores of the Plateau. The average production grades from the Uravan Mineral Belt from the 1940's to
Cisco holds 100 BLM claims in south east
Energy Fuels Incc, a leading producer of uranium and vanadium concentrates, operate the only fully licensed and operational conventional processing plant in
Energy Fuels has historically accepted toll milling agreements as well as purchase programs for processing ores from third party mines. While the Company currently has no relationship with Energy Fuels, this may represent a low cost opportunity for developers in the region to utilise existing infrastructure, substantially reducing the economic and environmental barriers for project development.
A map showing the detailed project location is on the Company website & can be view via the following link:
The Company has agreed terms, which are non-binding save for the exclusivity fee, for the acquisition of:
Following the acquisition, the non binding terms sheet envisages a series of performance payments, of:
· First Performance -
· Second Performance -
· Third Performance -
* Uranium equivalent will be calculated taking into account, in addition to uranium, credits for vanadium making up part of the relevant polymetallic deposit that have a reasonable potential to be recovered and sold, according to a formula that will be used and published in accordance with clause 50 of the JORC Code.
Following announcement of the Project Acquisition Agreement, the trading halt on ASX as announced on
MARKET OUTLOOK FOR URANIUM AND VANADIUM
Power from nuclear reactors accounted for 20% of US domestic power requirement in 2019, while globally nuclear generation supplies approximately 10% of demand. Nuclear power is acknowledged to provide stable, baseload, and low carbon power supply.
A total of 53 new nuclear reactors are under construction globally, with solid order books for more and approximately 300 additionally proposed. The inference is that uranium demand is likely to increase over the next 15 years or so. The US imports much of its uranium requirement for power generation.
Depressed uranium pricing over the last decade has resulted in very few new projects commence development. This suggests that a supply shortage may emerge in the next few years. Maximum anticipated uranium market requirements of owners and operators of
Among the key recommendations from the NFWG strategy is the proposal of direct purchases of uranium and nuclear fuel services to expand five-fold the American Assured Fuel Supply strategic inventory stockpile.
Vanadium is an important contributor to improving the tensile strength of steel, with the overwhelming bulk of vanadium demand applied to production of reinforcing steel to add tensile strength to concrete. It is also used in aerospace & has chemical and catalyst applications. More recently it has developed a significant market in battery applications with vanadium redox flow batteries used to store and release large amounts of energy.
The Company has raised gross proceeds of
Placees to receive, subject to shareholder approval, one Option for each two shares, to subscribe for a further new Ordinary Share at A1.0 cents per share, valid for three years from the date of issue.
The Placing was undertaken by Australian broker
Funds raised to be devoted exploration activities at the uranium and vanadium projects subject to this acquisition, further investment in
The Company will shortly issue 148,350,000 Ordinary Shares comprising 8,350,000 Ordinary Shares in payment of
Director Participation in the Conditional Placing
The issue of shares to
A notice of general meeting, expected to be held on or around
Subject to receiving shareholder approval at the forthcoming general meeting and assuming there are no further changes to the shareholdings and warrant holdings of
Number of Shares
Number of options
Number of Shares
% of enlarged share capital 1
Number of options
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1 The resultant % of the directors' holding as a proportion of total issued capital, assuming all resolutions associated with the Placing, Conditional Placing, Additional Placing and the acquisition are approved by shareholders and proceed to completion.
Settlement and dealings
Application will be made to the AIM Market of the
Application will be made for the admission to trading on AIM for the 30,000,000 Ordinary Shares making up the Conditional Placing, following the forthcoming AGM, assuming receipt of Shareholder approval.
Total Voting Rights
For the purposes of the Financial Conduct Authority's Disclosure Guidance and Transparency Rules ("DTRs"), following Admission, Thor will have 1,224,996,863 Ordinary Shares in issue with voting rights attached. Thor holds no shares in treasury. This figure of 1,224,996,863 may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company, under the ASX Listing Rules or the DTRs.
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.
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.
Thor Mining PLC (AIM, ASX: THR) is a resources company quoted on the AIM Market of the London Stock Exchange and on ASX in Australia.
Thor holds 100% of the advanced Molyhil tungsten project in the Northern Territory of Australia, for which an updated feasibility study in
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 deposit².
Thor also holds 100% of the Pilot Mountain tungsten project in Nevada USA which has a JORC 2012 Indicated and Inferred Resources Estimate³ on 2 of the 4 known deposits.
Thor holds a 25% interest Australian copper development company
· rights to earn up to a 75% interest in the mineral rights and claims over the resource⁴ on the portion of the historic Kapunda copper mine in South Australia considered recoverable by way of in situ recovery; and
· rights to earn up to 75% of the Moonta copper project, also in
Thor also holds a production royalty entitlement from the Spring Hill Gold project⁶ of:
• A$5.70 per ounce of gold produced from the Spring Hill tenements where the gold produced is sold for up to A$1,500 per ounce; and
• A$13.30 per ounce of gold produced from the Spring Hill tenements where the gold produced is sold for amounts over A
¹ Refer ASX and AIM announcement of 23 August 2018
² Refer ASX and AIM announcements of 26 November 2018 and
³ Refer AIM announcement of
⁴ Refer AIM announcement of 10 February 2018 and ASX announcement of 12 February 2018
⁵ Refer ASX and AIM announcement of 15 August 2019
⁶ Refer AIM announcement of 26 February 2016 and ASX announcement of 29 February 2016
This information is provided by RNS, the news service of the
Quick facts: Thor Mining PLC
Market Cap: £4.6 m
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