Thor Explorations Ltd (CVE:THX) has taken another step down the road towards achieving gold production at its Segilola gold project in Nigeria in 2020.
The company inked a memorandum of understanding (MoU) with NORINCO International for an engineering, procurement and construction (EPC) contract for the plant and infrastructure for the site.
READ: Thor Explorations brings in C$8mln from placing to advance Segilola project in Nigeria and Douta in Senegal
"We have been working with NORINCO International for the past year and there is an excellent level of co-operation and understanding between Thor and NORINCO International," said Segun Lawson, the group's president and chief executive.
"NORINCO International have provided a competitive EPC proposal priced on the preliminary feasibility study design, which provides confidence that the project can be delivered on time and on budget by a well-established EPC contractor.
"The MOU offers a clear path to Thor achieving gold production at Segilola in 2020."
Thor is currently working on an NI 43 101 definitive feasibility study (DFS) for the project in Osun state in Nigeria.
The company expects to complete the DFS in the fourth quarter of 2018 and the final terms of the EPC contract are to be negotiated following the completion of this study, the firm noted.
Earlier this month, Thor said it had raised a total of C$8mln after a private placing with Sprott Capital Partners.
The net proceeds of which will be used mainly to complete DFS (definitive feasibility study) workstreams and further explore the group's Segilola gold project in Nigeria, the firm had said.
Shares in Thor Explorations were unchanged at C$0.175.