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General mining & base metals

Thor receives final payment for sale of Spring Hill

Depending on whether the gold is sold for less than A$1,500 or not, Thor is entitled to a royalty on Spring Hill's output of A$6 or A$14 per ounce of gold

Thor Mining PLC (LON:THR, ASX:THR) has completed the sales of its residual interest in the Spring Hill gold project.

The company announced the sale of Spring Hill in February for A$3.5mln, with the payments to come in stages.

It has now received the final A$1.5mln payment, though it remains entitled to receive a royalty from the project.

“The A$1,500,000 in final consideration received will allow us to accelerate our exciting exploration programmes, starting with the Pilot Mountain drilling programme, due to commence within the next two weeks, and the new drilling programme planned at the Dundas gold project in the first half of 2017," said Mick Billing, executive chairman of Thor.

"The strengthened balance sheet will also provide us with much greater financing flexibility as we continue to assess new project opportunities.

"Based on work carried out to date, we believe that PC Gold plans to advance the Spring Hill gold project into production in the medium term, an outcome which would generate a potentially substantial royalty stream for Thor," Billing added.

Shares were down 1.9% in late morning trading at 0.687p.

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