Thor Mining PLC (ASX:THR) (LON:THR) has increased its equity stake to 30% in private Australian company EnviroCopper Limited (ECL), which has earned an initial farm-in interest in 50% of the Kapunda copper deposit in South Australia and intends to proceed to 75%.
Thor has paid the final tranche of $185,000 in completion of the $400,000 additional earn-in agreement and has provided notice to ECL to exercise its right to increase its holding.
Thor will be issued additional shares in ECL to take the equity holding to 30%, with these additional shares expected to be issued by November 16, 2020.
A very active period of field activities including drilling at both Kapunda and Alford West are scheduled over the next six months.
“Outstanding value”
Thor executive chairman Mick Billing said: “This additional investment in EnviroCopper represents outstanding value for Thor and Thor investors.
“Through EnviroCopper, we hold interests in resources totalling 233,000 tonnes of copper insitu with substantial upside for copper and the potential to also extract gold.”
“Global copper prices have improved strongly in recent weeks and, with the optimism that a COVID-19 vaccine may be available in 2021, this rebound shows signs of the acceleration which comes with economic recovery.”
Scheduled field activities
During the next three to six months Thor expects an active period of field activities by ECL on the Kapunda project including:
- Additional borehole hydrogeological testing, in follow-up of 2019 hydrogeological work;
- Gold test drilling; and
- Site Environmental Lixiviant Test (SELT) commencement.
At Alford West, ECL plans to drill an initial hydrogeological borehole to measure flow and connectivity characteristics within the deposit.
Billing said: “EnviroCopper has scheduled a host of field activities at both Kapunda and Alford West during the next few months, expected to add considerable value to each project.
“While the additional investment by Thor will be utilised on some of this work, the bulk of the expenditure requirement through to mid-2021 is funded, particularly at Kapunda, by an Australian Government grant.”
EnviroCopper has entered into an agreement to earn up to 75% of the rights over metals, which may be recovered via in-situ recovery contained in the Kapunda deposit from Terramin Australia Limited (ASX:TZN).
It also covers rights to 75% of the Alford West Copper Project comprising the northern portion of exploration licence EL5984 held by Andromeda Metals Limited (ASX:ADN).