Thor Mining adds gold and uranium focused companies to Australian portfolio

By Calum Muirhead / March 27, 2019 / tinyurl.com / Article Link

Thor Mining PLC (LON:THR) has acquired two gold and uranium focused companies in Australia in a move to expand its operations portfolio in the country.

The exploration firm, which already has a portfolio of assets in tungsten, molybdenum, copper, and other metals, said it had acquired Pilbara Goldfields Pty Limited (PGL) and Hamersley Metals Pty Limited (HML), which together hold interests in two granted licences and seven licence applications at various stages.

READ: Thor Mining says drilling to commence at Bonya deposits after clearance from the Aboriginal Areas Protection Authority

The licences, which are prospective for both gold and uranium, cover a total of 784 square kilometres in the Pilbara region of Western Australia, an area well known for its vast mineral deposits, as well as in the Northern Territory.

Thor said it would pay ?450,500 to acquire both PGL and HML through the issue of 53mln new shares at a price of 0.85p each.

Financing and new director

In addition to the acquisitions, the firm said it had raised ?400,000 through the issue of around 47.05mln new shares at 0.85p each, the proceeds of which would be used for working capital.

Thor also said it was currently undertaking due diligence prior to appointing a new non-executive director to the board to help with its transition and development.

Mick Billing, the company's executive chairman, said the acquisitions were in anticipation of a "crystallisation of value" in its other Australian assets, which include the Molyhil tungsten and molybdenum project, currently seeking financing to construct a mine at the site, and its Kapunda copper project which has been spun out into a new copper-focused company, Enviro Copper LTD.

READ: Thor Mining spins Kapunda project out into new in-situ leaching specialist Enviro Copper

"In anticipation of the above crystallisation process the company needs to access new Australian opportunities and the strategic acquisitions announced today enable us to take a material step forward in this regard, Billing said.

He added that the financing would bolster the firm's working capital and provide "a considerable extension" to its cash runway.

In early trading Wednesday, Thor shares were down 1.3% at 0.8p.

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