20th Jul 2005 09:29
Thor Mining PLC20 July 2005 THOR MINING PLC Disposal of uranium rights Dated: 20 July 2005 Thor Mining PLC ("Thor" or the "Company") the mineral exploration anddevelopment company focussed on advancing molybdenum and tungsten projects inthe Northern Territory of Australia announced today that it has entered intoheads of agreement with Batavia Mining Limited, an exploration company traded onthe Australian Stock Exchange, for the proposed sale of the uranium explorationrights to prospects in Eastern Arunta Province, Northern Territory of Australia. Under the proposed agreement, Batavia will acquire the rights to explore foruranium on Exploration Licences and Exploration License Applications held byThor. Consideration for the uranium rights will be an initial payment of AUD20,000 to be satisfied by the issue of new ordinary shares in Batavia, with afurther payment, subject to exploration success and the successful granting ofseparate Mining Lease Applications, of AUD 250,000 to be satisfied by the issueof new ordinary shares in Batavia. A 2.5% Net Smelter Return ("NSR") will bepayable on future production. Batavia will also provide an environmental bond inthe amount of AUD 50,000 payable prior to the commencement of any exploration orground disturbing activities John Barr, the Chairman of Thor, was until recently the Chairman of Batavia. Heis also a shareholder in Batavia. Greg Durack is a director of Thor and isManaging Director of Batavia. The independent directors of the Company believe that as Thor is focussed onadvancing molybdenum and tungsten projects, exploration expenditure on uraniumat this stage would be a distraction of effort and of considerable financialresource. Australia also has long had a policy of limiting the number of uraniumoperations in the country to three and the independent directors believe it isdoubtful that any new uranium mine will be approved in the near future. The directors, with the exception of John Barr and Greg Durack, consider havingconsulted with ARM Corporate Finance Limited, that the terms of the transactionare fair and reasonable insofar as the shareholders are concerned, provide theCompany with an investment in any future success of Batavia and an NSR on anyfuture sales of uranium. Enquiries: John Barr +61 418 912 885 Thor Mining PLC Executive ChairmanJohn Simpson 020 7512 0191 ARM Corporate Finance Ltd Nominated AdviserAmanda Harris 020 7618 8534 Conduit PR Public Relations This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Thor Energy