17th Apr 2007 09:34
Thor Mining PLC17 April 2007 THOR MINING PLC Memorandum of Understanding Hunan Nonferrous Metals Holding Group Dated: 17 April 2007 Thor Mining PLC ("Thor" or the "Company") the specialist metals companycurrently focussed on advancing tungsten-molybdenum and uranium projects in theNorthern Territory of Australia, today announced an update to the Memorandum ofUnderstanding (the "MOU") with China's Hunan Nonferrous Metals Holdings GroupCo, Ltd ("HNG") in regard to its Molyhil Tungsten-Molybdenum project ("Molyhil"). The original terms of the MOU allowed for a period of due diligence to beconducted by HNG until 15 April 2007. Subsequently, if HNG decided to proceed itwas the intention of both Thor and HNG to complete binding terms and suitableoff-take arrangements by 30 April 2007. HNG approached Thor, late Friday afternoon 13 April 2007, to consider extendingthe above deadlines as the due diligence was not yet complete and the revisedJORC resource for Molyhil is due shortly. Thor has today agreed with HNG to: 1. Postpone the date to conclude due diligence until 30 April 2007; and 2. Postpone the date for completion of commercial negotiations until 11 May 2007. Thor and HNG continue to work closely together on the outstanding due diligencematters, and Thor is optimistic that all outstanding matters will be resolved. The parties are scheduled to meet in Perth, to commence commercial negotiations,on Monday 30 April 2007. In preparation for those discussions Penfold Marketingare currently visiting HNG in China; and Thor's taxation and other advisors arepreparing various briefing documents. Thor's consultants will determine a revised JORC resource as soon as the assayresults from the recent drilling become available. Thor is endeavouring to havethis completed within the above time restrictions. The Directors believe HNG is a dominant producer of nonferrous and minor metalsin China. Thor understands that HNG owns the world largest deposits of tungstenand bismuth, is the world's largest producer of cemented carbides, and ownsChina's largest zinc and antimony smelters. The Directors also believe HNG is asignificant producer of lead, silver, indium, tantalum and niobium. HNG isheadquartered in Changsha City, Hunan, Peoples Republic of China and is themajority shareholder of Hunan Nonferrous Metals Corporation Limited, listed inHong Kong in May 2006. The Directors believe the HNG group's combined currentmarket capitalisation to be in excess of US$2 billion. The Company has requested a trading halt in its shares and warrants on theAustralian Stock Exchange (the "ASX") pending the release of this announcementon the ASX. The announcement will be released on the ASX prior to the start oftrading tomorrow, Wednesday 18 April 2007. Enquiries: John Young + 61 (0)419 954 020 Thor Mining PLC Chief Executive OfficerJohn Simpson 020 7512 0191 ARM Corporate Finance Limited Nominated AdviserLeesa Peters 020 7429 6600 Conduit PR Limited Public Relations/UK or 020 7429 6603Jos SimpsonNicolas Read + 61 (0) 8 9388 1474 Read Corporate Public Relations/Australia Updates on the Company's activities are regularly posted on Thor's websitewww.thormining.com which includes a facility to register to receive theseupdates by email. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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