Thor Mining (LSE:THR) was trading at 0.8p on Wednesday after announcing plans to expand its operational portfolio through two acquisitions.
The business said is looking to acquire Pilbara Goldfields and Hammersley Metals, which collectively hold interests in two granted licences and seven licence applications at various stages of advancement. These assets are prospective for gold and uranium and cover a total of 764km2 in the Pilbara region of Western Australia and the Northern Territory of Australia.
To purchase the companies, Thor will pay £450,500 through the issue of 53m new shares at 0.85p each. These are subject to a six-month lock-in. Furthermore, following shareholder approval, the vendors will receive 26.5m Thor warrants to subscribe for 26.5m of the company’s shares at 1.3p each. These will have a three-year lifespan. Finally, the vendors will receive an additional 22.5m Thor shares if any of their projects enter commercial production.
To support the development, Thor has undertaking strategic financing raising £400,000 by issuing more than 47m new shares at 0.85p each. These shares are accompanied by three-year warrants exercisable at 1.3p. ‘With existing cash at bank, the strategic financing provides a valuable addition to Thor’s working capital,’ the firm added.
Thor will now conduct further work on both Pilbara and Hammersley’s licence application interests before reporting back to the market over the coming weeks.
In Wednesday’s update, Thor said it pursued the deal because much of its portfolio is beginning to reach the crystallisation stage. Indeed, the business has advanced its 100pc-owned Molyhil tungsten and molybdenum project to mine construction-ready status. It is currently in a commercialisation process to secure project-level finance for the mine construction phase. Meanwhile, the company’s Kapunda project interest (up to 45pc) is being divested into a new company called Enviro Copper, as announced earlier this month.
Once these two transactions have completed, Thor said its exploration interests will be limited to its 40pc-owned Bonya tungsten, copper, and vanadium project. As such, executive chairman Mick Billing said the new firms will give it access to a new round of exploration opportunities in Australia.
‘I am extremely pleased to announce today's Strategic Australian acquisitions which add gold and uranium into the Thor Mining Australian portfolio,’ he added. ‘The company is seeing the maturity of its Molyhil project as we move toward the mine construction and production phases. Likewise, with Kapunda as announced the company is moving its interest into a new vehicle with a listing strategy on a recognised stock exchange.
‘In anticipation of the above crystallisation process the Company needs to access new Australian opportunities and the Strategic Acquisitions announced today enable us to take a material step forward in this regard. Alongside this the Strategic Financing further bolsters our working capital and provides a considerable extension to our cash runway. Thor is active in multiple areas and we anticipate further news updates to the market in the near-term. I look forward to updating the market across the above areas over the coming weeks.’
Elsewhere, Thor announced that it is currently undertaking standard director due diligence before appointing a new external non-executive director. This individual will assist the firm with its transition and development.
Author: Daniel Flynn
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