(Alliance News) - Metals explorer Thor Mining PLC said Tuesday it intends to raise GBP510,000 through a placing of shares, which will go towards funding activities in the company's tungsten and copper projects.
Thor Mining will raise the funds through the issue of 255.0 million shares at a price of 0.2 pence per share. The share issue was undertaken by Hybridian LLP as lead broker, alongside SI Capital Ltd.
The placing price reflects a 38% discount to Thor last closing price at 0.32p.
Of the shares raised, 113.3 million shares will be issued shortly, while the remaining 141.7 million shares are subject to shareholder approval at Thor's annual general meeting on or around November 28.
London-listed natural resources investor Metal Tiger PLC said it took part in the placing by Thor, subscribing for 22.5 million shares for GBP45,000.
Specifically, Metal Tiger has subscribed for 10.5 million shares in the unconditional placing, and 12.0 million shares in the conditional placing.
Following this transaction, should the conditional 141.7 million shares be issued, Metal Tiger will hold 96.6 million shares in Thor, reflecting a 9.0% stake.
Shares in the Thor Mining were 21% lower at 0.26 pence on Tuesday in London, while Metal Tiger shares were down 0.4% at 1.34p.
In particular, the proceeds will be used by Thor to progress work at its core Molyhill and adjacent Bonya tungsten and molybdenum project, as well as the EnviroCopper Ltd in-situ copper recovery project, all in Australia.
"The use of proceeds will be directed towards continuing to develop, primarily, our flagship Molyhil project, including drilling, scoping, and permitting studies at nearby Bonya, and field pump and recovery trials at EnviroCopper. This is expected to advance both projects materially, as well as giving Thor an increased runway to develop its ongoing discussions regarding securing project finance for Molyhil, about which we look forward to updating investors in due course.," said Thor Executive Chair Mick Billing.
"We are deeply disappointed with the performance of Thor and have maintained our pro-rata holding in order to protect our investment. We see Thor management (excluding Mark Potter who was only recently appointed) as having failed to deliver on their targets and believe that it is essential that cost cutting measures are taken urgently in order to reduce Thor's ongoing administrative costs," said Metal Tiger Chief Executive Officer Michael McNeilly.
Should all shares in the placing be issued, Thor Mining will have 1.08 billion shares overall.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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