Thor Mining Now Holds 6.3% Stake In USA Lithium (ALLISS)

29th Mar 2018 18:20

LONDON (Alliance News) - Thor Mining PLC, an Australian mining company, said Thursday its equity interest in USA Lithium Pty Ltd now stands at 6.3%.

USA Lithium Pty Ltd, an Australian mining company with a 100% interest in a lithium project in Nevada, outlined the execution of an option agreement to vend the assets of USA Lithium in to Australian Securities Exchange listed Hawkstone Mining Ltd.

Following the acquisition of a lithium brine deposit in New Mexico, US, and the issue of additional securities to promoters and for further seed capital, Thor's equity interest in USA Lithium now stands at 6.3%.

Under the agreement Hawkstone has a 14 day option period to acquire 100% of the shares on issue in USA Lithium for the consideration of 262.5 million fully paid shares, including 12.5 million non-refundable shares as option consideration, in Hawkstone.

The agreement is also subject to securing necessary shareholder approvals, and a successful capital raising by Hawkstone of GBP1.4 million.

Assuming the transaction with Hawkstone completes, Thor will be issued 15.6 million fully paid shares in Hawkstone on completion.

Mick Billing, executive chairman, said: "We welcome this very positive development for USA Lithium and the opportunity it provides to fund the exploration and evaluation of the exciting USA Lithium portfolio".

"While the agreement is subject to due diligence as well as appropriate shareholder approvals and successful capital raising, completion of this will be a very positive step".

"Assuming successful completion, the holding by Thor of tradeable securities in Hawkstone should very positively augment the available working capital of Thor, increasing it to near £2.0million post completion which we will mainly apply to the development of our strategic tungsten and copper interests."

Shares in Thor Mining closed up 1.9% Thursday at 2.68 pence each.

---

Related Shares:

Thor Energy