12th Mar 2008 07:00
Thor Mining PLC12 March 2008 THOR MINING PLC Molyhil Tungsten - Molybdenum Project Off-take Agreement entered into with CITIC Dated: 12 March 2008 Thor Mining PLC ("the Company" or "Thor"), AIM, ASX: "THR" the specialist metalscompany focused on advancing tungsten-molybdenum and uranium projects in theNorthern Territory of Australia, today announces that it has entered into anOff-take Agreement with CITIC Australia Commodity Trading Pty Ltd ("CITIC") forits Molyhil Tungsten - Molybdenum Project in the Northern Territory of Australia("Molyhil"). The agreement is for CITIC to take 100% of the Molybdenum andTungsten concentrates to be produced from Molyhil. Highlights • 100% life-of-mine off-take agreement for Molybdenum and Tungsten concentrates to be produced at Molyhil; • Final development approvals for Molyhil expected in during second quarter of 2008; • Signing of off-take agreement triggers final stage of funding process for Molyhil; and • Alternative financing also under consideration. CITIC is wholly owned by the CITIC Group, one of China's largest state-ownedcompanies with assets in excess of US$180 billion. The activities of the CITICGroup include banking and financial businesses, individual investments(including energy and raw materials) and international trade. The CITIC Group in Australia, comprising CITIC Australia Commodity Trading PtyLtd and CITIC Resources Australia Pty Ltd and has assets and annual sale of overA$1.2 billion. Its operations include a 22.5% interest in the Portland AluminiumSmelter Joint Venture in Victoria, a 17.66% shareholding in Macarthur CoalLimited, a 7% direct interest in the Coppabella/Moorvale Coal Joint Venture, a76.35% shareholding in the ASX-listed CITIC Australia Trading Limited, andinterests in a series of exploration projects. Final approvals for the development of Molyhil are expected during secondquarter of 2008, with the mine management plan currently under review by theDepartment of Primary Industries Fishing and Mining in the Northern Territory. Molyhil has a current resource of 3.73 million tonnes at 0.51% combined tungsten(WO3) and molybdenum (MoS2). The mining plan provides for the development of anopen pit mining operation and a new processing facility. The mining reservecontains a total of 4.9 million pounds of molybdenum metal and 700,000 mtu's oftungsten which will be produced over the expected 5.7 year life of the open pitdesign. Commenting on the signing of the off-take agreement, Thor's Chief ExecutiveOfficer, Mr John A. Young, said: "The negotiation of a long term off-takeagreement has been a critical factor in progressing the development of Molyhil.We are very pleased to have secured CITIC as a partner and, with this off-takeagreement now in place, we will now move forward to finalise fundingarrangements ahead of the planned commencement of construction at Molyhil." Mr Ting Hu Guo, the executive director of CITIC, said he was very pleased toenter into this agreement with Thor. "CITIC has been seeking to secure along-term supply of Tungsten and Molybdenum, which are important raw materialsfor the Group's expanding steel business in China," he said. "We are thereforedelighted to support Molyhil through this life-of-mine off-take agreement, whichclears the way for financing and development of this project to proceed," Mr Guoadded. Enquiries: John Young + 61 (0)419 954 020 Thor Mining PLC Chief Executive OfficerJohn Simpson 020 7512 0191 Blomfield Corporate Nominated Adviser Finance Ltd Leesa Peters 020 7429 6600 Conduit PR Limited Public Relations orJos Simson 020 7429 6603 Nicholas 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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