Thor Mining Plc (AIM, ASX: THR, OTCQB: THORF) has confirmed that Power Metal Resources Plc has exercised an option to acquire Thor’s 100% interest in Pilot Mountain Tungsten Project in Nevada, USA for an agreed value of US$1.8 million.
. ▪ Power Metal will pay US$115,000 in cash to Thor Mining and US$1,650,000 payable through the issue to Thor of 48,118,920 Ordinary Shares at an issue price of 2.5 pence per share.
▪ In addition, Power Metal will issue to Thor 12.5 million warrants to subscribe for Ordinary Shares with an exercise price of 4p per Ordinary Share and life to expiry of 3 years.
▪ Furthermore, a US$500,000 milestone payment will become payable in Ordinary Shares, if Golden Metal publishes a JORC or 43-101 compliant resource at Pilot Mountain which increases against current declared levels by 25% across total indicated and inferred categories within two years.
Nicole Galloway Warland, Managing Director of Thor Mining, said proceeds from the sale will be directed towards further exploration activities at the company’s copper and gold projects – Alford East, SA and Ragged Range in Western Australia.
“We are pleased to announce the completion of the due diligence process by Power Metals and its written confirmation to exercise the option to acquire the 100% of Pilot Mountain Project in Nevada, USA,” Galloway Warland said.
“This strategic divestment will allow Thor to focus on our copper and gold projects and provide further capital to accelerate exploration activities, including RC drilling, at Ragged Range Project in the Pilbara in WA and progress baseline studies for In-situ Recovery for copper and gold at Alford East Project, SA.
This sale is also the right mix of cash and shares to provide ongoing exposure to the Pilot Mountain Project.”
About Pilot Mountain Project
Pilot Mountain tungsten project in Nevada, USA which has a JORC 2012 Indicated and Inferred Resources Estimate on 2 of the 4 known deposits.
The 5,908-acre Project is centred around four existing mineral deposits including Garnet, Good Hope, Gunmetal and Desert Scheelite all which possess skarn-style tungsten-copper-silver-zinc mineralisation.
The Desert Scheelite Indicated and Inferred Resource comprises a 2012 JORC Compliant 9.9 million tonnes @ 0.26% WO3, 0.14% Copper, and 19.4g/t (grams/tonne) Silver, announced on 22 May 2017. The Garnet Inferred resource comprises a 2012 JORC Compliant 1.83 million tonnes @ 0.36% WO3, announced on 22 May 2017.
On December 13, 2018, Thor announced an upgraded and increased mineral resource estimate showing the Desert Scheelite mineral resource estimate comprises 10.7 million tonnes at 0.26% WO₃, 19.38 gram/tonne Silver (Ag), 0.15% copper (Cu), & 0.38% zinc (Zn) (above cut-off grade of 0.15% WO3).
For further information please visit: https://www.thormining.com/