Thor Mining (ASX: THR, AIM: THR) has raised just over A$1 million (£638,750) to fund its working capital requirements.
The company raised the money through a placement of 51.1 million shares to U.K. sophisticated clients of Simple Investments, Thor’s broker.
Thor is advancing towards the completion of a Definitive Feasibility Study at its Molyhil Tungsten and Molybdenum Project in the Northern Territory which is expected in June.
Last month the company enhanced the economics of Molyhil, lifting tungsten recovery to 85%, up 27% on the figure estimated in the project’s Feasibility Study.
Previous estimates have shown $900,000 in additional revenue per each 1% of tungsten recovery is possible, providing for increasingly robust economics.
The increase has been achieved through adding a flotation step to the tungsten recovery process, after gravity separation.
This allows the extraction of the very fine tungsten particles that do not respond well to gravity separation methods.
Importantly, this could lead to projected revenues at Molyhil being enhanced by something like A$16 million per year over the life of mine.
Molyhil has clear value in today’s market, which will be demonstrated when the Definitive Feasibility Study is released.
Following the completion of the study, Thor will need to secure offtake agreements and finance for Molyhil before the company will move to tender for design, construct and EPCM work.
The company is on track for production from the project in late 2013.
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