Last checked at 17 Feb 2017 09:06
17 February 2017
THOR MINING PLC
SPRING HILL SALE SETTLEMENT COMPLETION
The Board of Thor Mining Plc ("Thor" or the "Company") (AIM, ASX: THR) is pleased to advise of the completion of the sale process of the Company's residual interest in the Spring Hill Gold project.
Formal documents for completion have been executed and final settlement funds of A$1,500,000 have been received.
Mr Mick Billing, Executive Chairman, commented:
"We are very pleased with the completion of the Spring Hill sale agreement. The A$1,500,000 in final consideration received will allow us to accelerate our exciting exploration programmes, starting with the Pilot Mountain drilling program, due to commence within the next two weeks, and the new drilling programme planned at the Dundas gold project in the first half of 2017."
"The strengthened balance sheet will also provide us with much greater financing flexibility as we continue to assess new project opportunities.
"Based on work carried out to date, we believe that PC Gold plans to advance the Spring Hill gold project into production in the medium term, an outcome which would generate a potentially substantial royalty stream for Thor."
Spring Hill Sale Background In February 2016, Thor announced the sale of its Spring Hill Gold project¹ for A$3.5million, of which A$1.5 million for the Company's residual 40% interest, remained due for settlement in February 2017. Going forward, Thor is entitled to receive a royalty from the Spring Hill project of:· A$6 per ounce of gold produced from the Spring Hill tenements where the gold produced is sold for up to A$1,500 per ounce; and· A$14 per ounce of gold² produced from the Spring Hill tenements where the gold produced is sold for amounts over A$1,500 per ounce.
Notes
¹ Refer AIM announcement of 26 February 2016
²At the date of this announcement gold is trading at approximately A$1,610/oz, and has traded above A$1,500/oz for the past 12 months.
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
Enquiries:
Mick Billing | +61 (8) 7324 1935 | Thor Mining PLC | Executive Chairman |
Ray Ridge | +61 (8) 7324 1935
| Thor Mining PLC | CFO/Company Secretary |
Colin Aaronson/ Daniel Bush/ Richard Tonthat | +44 (0) 207 383 5100
| Grant Thornton UK LLP
| Nominated Adviser |
Elliot Hance | +44 (0) 207382 8300 | Beaufort Securities Limited | Joint Broker |
Nick Emerson / Andy Thacker | +44 (0) 1483 413 500 | SI Capital Ltd | Joint Broker |
Tim Blythe/ Camilla Horsfall | +44 (0) 207 138 3222 | Blytheweigh | Financial PR |
Updates on the Company's activities are regularly posted on Thor's website www.thormining.com, which includes a facility to register to receive these updates by email, and on the Company's twitter page @ThorMining.