Shares in Thor Mining PLC (LON:THR) soared on Tuesday morning after the junior miner told investors that US Lithium – in which it holds a 25% stake – is looking to list on the Australian Securities Exchange.
US Lithium, which holds lithium exploration interests in Arizona, is issuing 2mln shares at A$0.12 apiece to raise A$240,000 as part of the initial public offering.
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That compares favourably with the 2.5mln shares Thor purchased for A$0.04 each.
Assuming the IPO goes ahead as planned, Thor’s stake in US Lithium will be diluted to 20.83%.
“US Lithium has made very positive progress in recent months, and we welcome the additional investment at a substantial premium to the original Thor investment,” said Thor executive chairman Mick Billing.
“The market for lithium continues to grow, and quality assets will be rewarded. We look forward to a successful listing of US Lithium on [the] ASX in due course.”
As for operational progress at US Lithium, Thor said additional claims have been lodged to the south of the Big Sandy project in Arizona which would roughly double the area of the project.
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The explorer has also recently carried out site mapping at the project, while it is currently waiting on assay results from auger drilling.
MDS of California, USA – reported to have “considerable experience” with lithium processing from clay-based projects – has also been appointed to complete first stage metallurgical test work.
Thor shares jumped 22.7% to 2.3p on Tuesday.