Metal Tiger is subscribing for 10mln new Thor shares, priced at 3p each, and it is also receiving share warrants that can be exercised to increase its stake further at a price of 5p per additional share. In late afternoon trading, Thor Mining shares were 15% higher at 2.88p.
On top of that, Metal Tiger will have the right of first refusal to participate in any joint venture, acquisition or similar transaction undertaken by Thor.
The cash injection will support the advancement of Thor’s key projects - Molyhil, Pilot Mountain and Kapunda Copper.
"I look forward to working with Metal Tiger plc and assessing a number of opportunities across our current operational portfolio where there may be potential for collaborative transactions between our companies,” said Mick Billing, Thor Mining executive chairman.
“The 90 day first right of refusal period allows us the opportunity to explore opportunities with a degree of commitment and engagement from both companies."
Meanwhile, Metal Tiger chief executive Michael McNeilly added: “Metal Tiger is a financially robust and proactive natural resource investing business looking for new opportunities to deploy capital into companies and projects with considerable upside potential. We are delighted to increase our position through this strategic financing.
“We consider the size, potential and scalability of Thor’s key projects to be of significant interest and that the current valuation placed on Thor offers considerable upside potential for investors.
“We look forward to working with Thor to assess commercialisation opportunities.”
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