Thor Mining PLC (LON:THR) (ASX:THR) saw its shares jump today after it revealed a significant step forward in the development and commercialisation of the Pilot Mountain tungsten and multi-commodity project in Nevada.
Upon the acquisition by Thor of Pilot Mountain in 2014 from Black Fire Minerals Limited, the project company acquired had an existing obligation to pay Pacific Gold & Royalty Corporation - a previous owner of the project - an amount of US$1.5mln (approximately £1.13mln) on commencement of production.
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However, Thor said, following commercial negotiations, this $1.5mln potential liability is now being settled for US$125,000 (approximately £95,000) by way of an immediate cash payment by Pilot Metals Inc., one of the company's subsidiaries, to Pacific Gold & Royalty Corporation.
Mick Billing, Thor’s executive chairman, commented: "We are very pleased to be able to settle this future debt at just over 8.3% of face value, which we believe is a great outcome for the Company and its investors."
"The payment will be funded from existing cash resources and is not expected to change our expectation that we will be fully funded based on current planned activities until 2019."
He added: "The company is continuing its proactive work programme which we anticipate will deliver news in respect of each of its key interests at Pilot Mountain, Molyhil and Kapunda and also in respect of work assessing further project opportunities, including in the Pilbara region of Australia."
In reaction, Thor share has risen by over 14%, or 0.28p higher to 2.20p by 11.20am.