TIDMTHR
RNS Number : 2280U
Thor Mining PLC
20 October 2017
20 October 2017
THOR MINING PLC
FINANCING AND STRATEGIC UPDATE
The Directors of Thor Mining PLC ("Thor" or the "Company") (AIM,
ASX: THR) are pleased to announce a strategic financing to advance
the Company's key projects towards commercialisation.
The next phase of activity demonstrates a departure from a focus
on exploration expenditure, to build project resources, and the
commencement of activities designed to progress the commercial
potential of each of the Company's core projects. The key focus for
the Company now is to demonstrate the value that the board consider
existing projects to hold, and move them towards commercialisation,
in order to generate quantifiable shareholder value.
Exploration where undertaken, will be focused on new discoveries
and high impact targets, and may involve new opportunities not yet
in the Company portfolio. Expenditure on exploration will be
controlled in order to move the Company away from the high
exploration spend recently encountered, which resulted in a need to
undertake frequent capital raises.
Highlights:
-- The Company has substantially completed exploration drilling
requirements for all key projects;
-- Increasing tungsten and copper prices have accelerated
interest in high quality tungsten and copper projects with
substantial confirmed resources, like those that Thor has currently
within its portfolio;
-- Drilling outcomes on key projects in 2017 have been very
favourable, with a significant resource upgrade at Pilot Mountain,
and a resource estimate for Kapunda is anticipated shortly;
-- At the Pilot Mountain and Molyhil projects, the Company has
been encouraged by potential off-takers and financiers to move
toward feasibility and development. The Company is considering its
options, including the potential for joint venture, offtake, or
acquisition agreements, should there be sufficient third-party
interest;
-- The Company is to accelerate scoping and feasibility upgrade
work to demonstrate the inherent project valuations which the board
consider are not recognised in the Company's market valuation, but
may be more recognisable with positive study outcomes, with the
potential engagement of partners to help develop and fund these
exciting projects;
-- The Company has raised gross proceeds of GBP565,000 through
the placing of 29,473,686 new ordinary shares of 0.01p each
("Ordinary Shares") and the conditional placing of 41,151,314 new
Ordinary Shares at a price of 0.8p each (the "Placing and
Subscription");
-- Chairman Mick Billing to invest GBP24,000, and Non-executive
Director Paul Johnson to invest GBP25,000 in the placing, subject
to shareholder approval;
-- Placees to receive one warrant with each Ordinary Share to
subscribe for a further new Ordinary Share at a price of 1.2p per
Ordinary Share ("Warrant"), valid for one year from the date of
issue;
-- Funds raised increase existing cash balances and enables the
Company to focus attention on accelerating the Company's core
tungsten and copper projects;
-- Thor is now fully focused on the commercialisation pathway
and ensuring through our technical work, and enhanced marketing and
communications, we drive increasing investor awareness with a view
to securing a market capitalisation more reflective of the value
the board consider the Company's projects to hold.
Mr Mick Billing, Executive Chairman, commented:
"This financing builds on the Company's cash position enabling
work towards scoping studies on the Pilot Mountain tungsten project
in Nevada USA, proof of concept work at the Kapunda copper project
in South Australia, and updating the Definitive Feasibility Study
for the Molyhil tungsten in the Northern Territory of
Australia."
"Drilling program results at Pilot Mountain have enabled the
Company to increase the Pilot Mountain resource estimate on 22 May
2017, and subsequent work has improved confidence that this
resource should continue to grow with new material zones of
mineralisation identified. Positively however, the directors have
concluded that the existing resource inventory is more than
sufficient to commence the project development stage, with
potential off-takers and financiers suggesting the Company move
towards commercial feasibility studies."
"The strategic value of the substantial Pilot Mountain tungsten,
copper & silver project in the US should not be understated.
Apart from the rising commodity prices for copper and tungsten, the
absence of tungsten mining in the US is notable, and through Pilot
Mountain, Thor has a potential solution to that dilemma. The
general drive toward homeland strategic commodity security also
underpins the strategic significance and inherent value of Pilot
Mountain.
"At the Kapunda copper project the project operator,
Environmental Copper Recovery Pty Ltd, is advancing proof of
concept work, and anticipates preparation of a maiden resource
estimate for that part of the deposit amenable to insitu recovery
techniques shortly. This will be another major step forward for the
Company and provide another source of potential value for
shareholders."
"At Molyhil, the Company expects that reductions in both capital
and operating costs, currently under review, along with recent
global tungsten price improvements will result in robust and
positive project economic outcomes that we will communicate to the
market as appropriate."
"In summary Thor has built a strong portfolio and needs now to
focus its efforts on fully communicating this to investors in the
company and third parties who are seeking exposure to tungsten and
copper opportunities. As a company we have to be bold and
demonstrate that in the board's view, the market value of the
Company considerably understates the value of our business
interests."
Placing and Subscription summary
The Placing and Subscription will raise in aggregate gross
proceeds of GBP565,000, through the issue of a total of 70,625,000
Ordinary Shares at a price of 0.8p per Ordinary Share. Placees will
also be granted one free attaching Warrant for each Ordinary Share
subscribed, each enabling the holder to subscribe for a further
Ordinary Share at a price of 1.2p per Ordinary Share. The Placing
was undertaken by SI Capital Ltd.
The Company will shortly issue 29,473,686 Ordinary Shares and
29,473,686 Warrants pursuant to its existing shareholder
authorities and will convene a general meeting of the Company at
which shareholders will be asked to grant the Directors the
necessary authorities to issue the remaining 41,151,314 Ordinary
Shares and 41,151,314 Warrants (the "Conditional Placing").
The net proceeds of the Placing and Subscription will enable the
Company to focus attention on scoping and feasibility studies on
the Company's tungsten and copper projects. The Placing and
Subscription will also provide the Company with additional working
capital.
Director Participation in the Placing and Subscription
Mick Billing and Paul Johnson, both directors of the Company,
propose to participate in the conditional Placing and Subscription
by subscribing for 3,000,000 and 3,125,000 new Ordinary Shares
respectively (with matching free attaching Warrants) on the terms
above, for an aggregate subscription of GBP49,000, subject to
shareholder approval at a forthcoming general meeting of
shareholders.
A notice of Annual General Meeting ("AGM"), scheduled to be held
on or around 29 November 2017, will shortly be sent to
shareholders, in order to seek, along with normal AGM agenda items,
approvals for increased director authorities to issue Ordinary
Shares and Warrants, to be used in the first instance to issue the
Ordinary Shares and Warrants pursuant to the Placing and
Subscription. Further announcements will be made in this respect as
soon as practicable.
Subject to receiving shareholder approval at the forthcoming AGM
to be convened shortly, and assuming there are no further changes
to the shareholdings and warrant holdings of Mick Billing and Paul
Johnson before the completion of the Conditional Placing, the
beneficial holdings of these directors and their connected parties
will be as follows:
Director Amount Ordinary Resultant Resultant Warrants
subscribed Shares holding percentage held
LIR to be of Ordinary holding (of
issued Shares enlarged issued
share capital)
----------- ------------ ---------- ------------- ----------------- -----------
Mick
Billing 24,000 3,000,000 31,265,242 6.32% 21,765,040
Paul
Johnson 25,000 3,125,000 19,627,649 3.97% 24,325,000
The participations by Mick Billing and Paul Johnson in the
conditional Placing and Subscription constitute related party
transactions for the purposes of AIM Rule 13. The independent
directors, having consulted with the Company's nominated adviser,
Grant Thornton UK LLP, consider that the terms of the related party
transactions are fair and reasonable in so far as the Company's
shareholders are concerned.
Settlement and dealings
Application will be made to the AIM Market of the London Stock
Exchange ("AIM") for a total of 29,473,686 Ordinary Shares,
pursuant to the Placing and Subscription, which rank pari passu
with the Company's existing issued Ordinary Shares, to be admitted
to trading. Dealings on AIM are expected to commence at 8:00am on
or around 3 November 2017 ("Admission").
Total Voting Rights
For the purposes of the Financial Conduct Authority's Disclosure
Guidance and Transparency Rules ("DTRs"), following Admission, Thor
will have 453,598,005 Ordinary Shares in issue with voting rights
attached. Thor holds no shares in treasury. This figure of
453,598,005 may be used by shareholders in the Company as the
denominator for the calculations by which they will determine if
they are required to notify their interest in, or a change to their
interest in the Company, under the ASX Listing Rules or the
DTRs.
Subject to receiving shareholder approval at the forthcoming
AGM, in order to complete the Conditional Placing, and assuming
Thor issues no further Ordinary Shares in the meantime, following
the completion of the Conditional Placing, Thor will have
494,749,319 Ordinary Shares in issue.
Enquiries:
Mick Billing +61 (8) 7324 Thor Mining Executive
1935 PLC Chairman
Ray Ridge +61 (8) 7324 Thor Mining CFO/Company
1935 PLC Secretary
Colin Aaronson/ +44 (0) 207 Grant Thornton Nominated
Daniel Bush/ 383 5100 UK LLP Adviser
Richard Tonthat
Elliot Hance +44 (0) 207382 Beaufort Securities Joint Broker
8300 Limited
Nick Emerson +44 (0) 1483 SI Capital Ltd Joint Broker
/ Andy Thacker 413 500
Tim Blythe/ +44 (0) 207 Blytheweigh Financial
Camilla Horsfall 138 3222 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.
About Thor Mining PLC
Thor Mining PLC is a resources company quoted on the AIM Market
of the London Stock Exchange and on ASX in Australia.
Thor holds 100% of the advanced Molyhil tungsten project in the
Northern Territory of Australia, for which an updated feasibility
study in 2015(1) suggested attractive returns. Thor also holds 100%
of the Pilot Mountain tungsten project in Nevada USA which has a
JORC 2012 Indicated Resources Estimate(2) on 1 of the 4 known
deposits.
Thor is also acquiring up to a 60% interest Australian copper
development company Environmental Copper Recovery SA Pty Ltd, which
in turn holds rights to earn up to a 75% interest in the mineral
rights and claims over the portion of the historic Kapunda copper
mine in South Australia recoverable by way of in situ recovery.
Thor also holds a production royalty entitlement from the Spring
Hill Gold project(3) 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 gold produced from the Spring Hill
tenements where the gold produced is sold for amounts over A$1,500
per ounce.
Notes
-- (1) Refer ASX and AIM announcement of 12 January 2015
-- (2) Refer AIM announcement of 22 May 2017 and ASX announcement of 23 May 2017
-- (3) Refer AIM announcement of 26 February 2016 and ASX announcement of 29 February 2016
-- At the date of this announcement gold is trading at approximately A$1,630/oz
This information is provided by RNS
The company news service from the London Stock Exchange
END
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