30th Apr 2015 07:48
LONDON (Alliance News) - Thor Mining PLC shares rose on Thursday morning after it said it will fully own the Spring Hill gold project in northern Australia after agreeing to acquire the remaining equity stake it did not already own.
Thor shares were up 24% to 0.0869 pence per share on Thursday morning.
Thor has agreed to buy the 49% stake in the project held by WDR Gold Pty Ltd, a subsidiary entity of Western Desert Resources Ltd, after it went into liquidation for AUD210,000. Following the deal, Thor will own 100% of the project if approved by authorities.
Thor will also pay an additional AUD100,000 once the deal is approved by the Foreign Investment Review Board and ministers.
"Acquiring the balance of Spring Hill at modest cost is a sound and robust opportunity, particularly with the recent firming of the gold price. Spring Hill is a quality gold project with potential for low cost, near-term profitable development. Thor will be exploring all opportunities to secure maximum benefit from full ownership," said Mick Billing, executive chairman of the company.
In a separate statement on Thursday, Thor said prioritising expenditure on other projects has prevented much progress on the Spring Hill project, but said recent movement in the gold price has "added significant value" to the project.
Thor hopes to secure project financing for the Molyhil tungsten project "in the near-term" with the aim of starting production in 2016 whilst evaluating its options on the Pilot Mountain tungsten project, with exploration starting later in 2015. In addition, it said that whilst it has defined the drilling targets at the Dundas project, little progress has been made also due to the company prioritising its expenditure.
By Joshua Warner; [email protected]; @JoshAlliance
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