Thor Mining PLC (LON:THR) has raised £460,000 through a placing of 51.1mln shares at a price of 0.9p each to accelerate and extend planned drilling at its Pilot Mountain tungsten project in Nevada.
The AIM-listed group said it will also use the funds to finance explorations work on the Big Sandy lithium project in Arizona, in which the company has a 25% stake, with the option to acquire the remaining 75% from the licence holder, US Lithium Pty Ltd.
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Thor’s executive chairman Mick Billing subscribed for 3.0mln of the placing shares for £27,000, increasing his holding in the company to 28.3mln shares, representing a 6.7% stake.
Non-executive director Paul Johnson also took part, acquiring 5.0mln shares for £45,000 to take his shareholding to 15.0mln shares, representing a 3.5% stake.
Those taking part in the fund-raising will also receive one warrant with each placing share to subscribe for a further new ordinary share at 1.8p each, valid for two years from the date of issue.
WATCH: Lithium acquisition 'particularly exciting' for Thor Mining, says chairman Mick Billing
In afternoon trading, Thor Mining shares rose 5.6%, or 0.05p to 0.95p.
Commenting on the fund raising, Billing said: “I am pleased to announce this very important financing which builds on the existing solid cash position and enables the company to undertake an accelerated work programme.
“Proactivity on the ground delivers news to market and we anticipate numerous market updates across the company's interests in the near term.”
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He added: "In particular, we await results from the drilling work at the Dundas Gold Project, we are scheduled to commence further drilling at Pilot Mountain in Nevada within the next few weeks and have commenced our review of US Lithium's projects, and will be active on the ground in Arizona and New Mexico shortly.”
Billing concluded: “We are entering a highly news generative period for the company and I would to thank our shareholders for their support and the investors in this placing."