Thor Mining PLC (AIM:THR, OTC:THORF, ASX:THR) and Power Metal Resources PLC (AIM:POW) have agreed to a Variation of Tail Benefit as part of the sale agreement of the Pilot Mountain tungsten project in Nevada.
For the variation, Power Metal will pay Thor £50,000.00 in cash and issue it 4mln new shares at a deemed issue price of 2.5p (total value of £100,000).
The original tail benefit comprised a US$500,000 milestone payment the resource rose by 25% across total indicated and inferred categories within two years.
Additionally, Power Metals confirmed the completion of its due diligence and the sale of Pilot Mountain completed on 24 January 2022.
Nicole Galloway Warland, Thor’s Managing Director of Thor Mining, said: "Thor is pleased with this tail benefit variation, although the payment is less, there is no risk to Thor, with THR receiving the cash and share payment upfront.
Paul Johnson, Power Metal’s CEO added: "Our ongoing technical work in respect of the Pilot Mountain project has increasingly demonstrated significant upside potential within the existing 2018 Mineral Resource Estimate and we considered there was a reasonable likelihood that the tail benefit would become payable within the 2 year payment period.”