Thor Mining PLC's (AIM:THR, OTC:THORF, ASX:THR) recent farm-out deal for its Molyhil tungsten project and the sale of its adjacent Bonya tenement, both of which are in Northern Territory, Australia, will allow the firm to focus on areas where analysts at WH Ireland "see the potential for value creation".
Thor announced today that its wholly owned subsidiary Molyhil Mining Pty Ltd has signed a Heads of Agreement (HOA) with ASX-listed Investigator Resources Limited (IVR) to fund the accelerated exploration of Thor’s 100%-owned Molyhil tenements, in the Northern Territory, and the sale of the neighbouring Bonya tenement in which it has a 40% interest. Molyhil is an advanced tungsten-molybdenum project.
Under the terms of the HOA: 1) a three-stage Joint Venture agreement (JV) will be established allowing for IVR to acquire up to 80% of the Molyhil tenements and Thor’s interest in the Bonya tenement; 2) IVR will invest A$8m to advance mineral exploration within the Molyhil tenements, and if economic, the JV will develop and exploit Molyhil; 3) Thor will receive A$100,000 cash and A$500,000 paid in IVR shares.
The analysts concluded: "The JV agreement, and sale of its interest in Bonya, secures funding and allows Thor to concentrate its efforts on exploring its US uranium projects and the Ragged Range project in Australia."