Thor Mining PLC (LON:THR) announced today that t has had receipt of A$8,124 as the first royalty payment from gold production at the Spring Hill project in Australia, which it sold in February 2016 for A$3.5mln.
The AIM-listed firm has a royalty entitlement of A$6 per ounce of gold produced from the Spring Hill tenements which is sold for up to A$1,500 per ounce; and A$14 per ounce of gold produced from the Spring Hill tenements which is sold for amounts over A$1,500 per ounce.
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During the June 2017 quarter, the operator at Spring Hill produced 610.84 ounces of gold, via processing historic ore stockpiles.
Thor was previously the recipient of loan funds secured in part against Spring Hill which were repaid in full following the completion of the sale, though that lender holds an entitlement to 5% of all royalty proceeds received by the group from the project.
The group said the initial royalty sum is stated net of that 5% entitlement
Mick Billing, Thor’s executive chairman said: "We are delighted to receive the first of what is expected to be a series of royalty payments from gold production at Spring Hill.”
He added: "The project operator is continuing to advance regulatory approval to commence normal mining and processing activities and we look forward to updating investors with progress as news becomes available".