19th Apr 2018 12:54
LONDON (Alliance News) - Thor Mining PLC said Thursday it is to go ahead with the purchase of two exploration licences on the Bonya tungsten and copper prospects in Australia's Northern Territory.
Thor has been notified the 60% holder of licence EL29701, Arafura Resources Ltd, is not exercising its pre-emptive right to match Thor's offer. As a result, it will take the other 40%, meaning it has now entered into a joint venture with Arafura on the licence.
It has also bought a 100% interest of the EL29599 licence, which it described as "prospective for copper exploration".
The total consideration for the two interests is AUD550,000, to be settled in Thor shares.
Executive Chairman Mick Billing said: "This latest news on the Bonya acquisition is great news for the Molyhil development, and for Thor investors. The proximity of the Bonya deposits to Molyhil, and the potential to boost both scale and operating life should add significantly to the projected economic returns.
"Historic drilling and trenching has confirmed tungsten mineralisation on several deposits at Bonya, however there has been no tungsten focussed exploration on the tenement in over 35 years."
He added: "Provided some of these known prospects mature, along with others which we expect to develop, it is more than likely that Molyhil production life and throughput volume should increase substantially."
Shares were up 11% on Thursday at 2.62 pence each.
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