Thor Mining PLC (LON:THR) shares jumped over 20% higher on Friday after the firm told investors its Pilot Mountain tungsten project has received a boost after the US House of Representatives passed an Act that lists the metal as a critical commodity.
The House’s Natural Resources Committee has passed the National Strategic and Critical Minerals Production Act, which Thor expects to accelerate regulatory approvals of mining developments for critical mineral projects in the US.
READ: Thor Mining is focussing on Pilot Mountain, Molyhil and Kapunda
The news is of particular significance to the Pilot Mountain project in North Carolina since the Act lists tungsten as a critical commodity.
In late afternoon trading, Thor Mining shares were 22.2% higher at 2.75p.
Thor’s executive chairman Mick Billing said the “accelerated focus on critical commodities in the US means Pilot Mountain is exceptionally well positioned to create considerable value”.
"After years of challenges in the tungsten sector, the company has received interest in its projects from multiple avenues,” he said.
“To secure best value for shareholders we must be seen to drive our tungsten interests forward whilst engaging commercially with third parties.”
Thor decides against Western Shaw acquisition
The company also provided an update on its plan to buy the Western Shaw project in Western Australia.
After completing initial due diligence on the project, it has decided it will no longer acquire the project.
Earlier this month, Thor said it would focus solely on its tungsten and copper interests, including Pilot Mountain, Molyhil and Kapunda.
READ: Thor Mining's more focused tungsten and copper strategy wins over investors
“We have followed through with that today and although we have many exploration opportunities, we must be hard-headed and now recognise Thor already has three substantial advanced tungsten, and copper, interests each of substance and significantly scalable,” Billing said.
Thor well-funded
Billing said the company has noted the downward pressure on its share price in recent weeks but assured investors that this does not reflect the progress it has achieved across its key projects.
“With £1.6mln cash at bank, no debt and a focus on commercialisation of our interests Thor Mining has no need to rely upon the market for financing and in cash terms is funded against current plans well into 2019."
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