31st Jul 2015 07:29
LONDON (Alliance News) - Thor Mining PLC shares rose on Friday morning after it said several companies are evaluating its Molyhil project as the company attempts to secure project financing and said the capital cost of the project has been reduced by 8%.
Thor shares were up 22.5% to 0.0490 pence per share on Friday morning.
The miner said several entities are currently reviewing its Molyhil tungsten and molybdenum project in Australia as the company aims to secure project development finance to move it into production during 2016 after completing an updated feasibility study in early 2015.
"Since the release of the feasibility study in January 2015, global tungsten prices have declined. However industry forecasts indicate that the market for tungsten products, in the medium term, remains solid," said the company.
"Recent weakening of the Australian dollar against other currencies, particularly the US dollar has partially offset this with the result that Molyhil production costs remain well below what is accepted as average for Chinese production," it added.
Thor said it is conducting an ongoing review of the project and has already identified savings of AUD6 million in capital expenditure by reducing the capital cost of the project to AUD64 million from AUD70 million.
At the Spring Hill gold project, also in Australia, Thor is currently exercising a right to fully acquire the project. On Friday, Thor said no objection has been raised by the Australian Foreign Investment Review Board for the acquisition and the transfer of ownership is currently under assessment by the Northern Territory government, it said.
At the Dundas project, Thor has identified drilling targets but said the company has prioritised spending on other projects, meaning there is a lack of progress being made at Dundas.
By Joshua Warner; [email protected]; @JoshAlliance
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