Monday saw Thor Mining announce plans to bolster its North American footprint with the acquisition of a portfolio of uranium and vanadium projects.

The firm will purchase 100% of the shares in American Vanadium, which wholly-owns 199 contiguous claims in the Uravan Mineral Belt in south-west Colorado, and 100 claims in south-east Utah.

The Utah claims have reported extensive historical drilling, with significant intersections of both uranium and vanadium. Meanwhile, the Colorado claims include the historical Radium Mountain and Wedding Bell groups of mines, where production has been intermittent for more than 100 years.

Thor’s executive chairman Mick Billing said: “This is an outstanding opportunity for Thor and its investors. Deposits from the Uravan Mineral Belt have produced large quantities of high-grade uranium and vanadium ore over decades until the early 1980s when the global uranium price collapsed.

“We have a Colorado-based team ready to commence a sampling program from the historical mines and we look forward to the results of that work, [then moving] on to permitting and drilling as soon as possible.”

To support its purchase of the assets, Thor has raised A$700,000 by placing shares at A$0.05 each. It has also launched a conditional placing with AIM peer Metal Tiger (LSE:MTR), raising a further A$130,000 by once again issuing shares at A$0.05 each. After the placing, Metal Tiger agreed to invest a further A$120,000 on the same terms.

Metal Tiger CEO Michael McNeilly highlighted the “highly prospective projects” and told the market:  “We continue to see significant value in Thor Mining and are pleased to support their fundraise. We believe that the outlook for uranium demand in the US is expected to be particularly robust and are pleasedThor now has significant exposure to this commodity.”

The sellers of American Vanadium also subscribed for A$200,000 of shares in the placing, Thor said.

Thor Mining shares had climbed 15% to 0.38p in early Monday trading, while Metal Tiger, a £30 million company, was trading 10% higher.

EnviroCopper opportunity

Thor also intends to use its placing proceeds to increase its investment in EnviroCopper Ltd with a primary objective of drill testing the gold potential at Kapunda, and for follow-up field work at the Pilbara project where visible gold and anomalous nickel have been encountered in early stage work.

EnviroCopper is a 25%-owned associate of Thor and is testing gold potential at Kapunda, near Adelaide in south Australia. In November 2019 Thor said visible gold had been discovered at 13 out of 44 sediment trap sites at the Pilbara Goldfield tenements in Western Australia.

Author: Mark Sheridan

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