28th Sep 2005 07:01
Thor Mining PLC28 September 2005 THOR MINING PLC Preliminary Results for the period ended 30 June 2005 Dated: 28 September 2005 Thor Mining PLC ("Thor" or the "Company") the mineral exploration anddevelopment company focussed on advancing tungsten and molybdenum projects inthe Northern Territory of Australia announces its preliminary results for theperiod ended 30 June 2005. Executive Chairman's operating and financial review Thor has been established as a mineral exploration and development companyfocussed on advancing its molybdenum and tungsten projects in the NorthernTerritory of Australia. Background Thor's wholly owned subsidiary, Sunsphere, has three groups of resource assetsin the Northern Territory of Australia comprising Molyhil, Thring Creek andHatches Creek. The principal project of the Company is the Molyhil molybdenum-tungsten deposit.The Molyhil deposit has an indicated resource of 1,530,000 tonnes at 0.32% WO(3)and 0.19% MoS(2), and an inferred resource of 500,000 tonnes at 0.25% WO(3) and0.15% MoS(2). The Directors believe that, based on experience and bulk sampling, mining shoulddemonstrate head grades exceeding current drill-indicated grades and that theexploration program outlined in the Prospectus should give scope for an increasein resource estimates. Subsequent to the year end the Company has commenced exploration at Molyhil. Operating review The Company's initial exploration program involves sinking three shafts andcross cuts to enable bulk samples to be extracted to evaluate the true headgrade and mineralogical characteristics of the Molyhil deposit. The results willbe utilised to update the current JORC Code compliant resource and provide thefinal resource for the pre- feasibility study. Thor has budgeted to spend approximately £490,000 on its exploration programmethis financial year and £200,000 on a pre-feasibility study. In September 2005 the sinking of the first shaft and cross cut at Molyhil wascompleted. Samples have been crushed and delivered to the analytical laboratory.Results from the analysis will be available in late September. The second and third shafts have been sunk to four and thirty metresrespectively and work on these shafts will continue over the next few weeks. Itwas anticipated that all field work for the bulk sampling will be completed inearly October and that the new resource will be published in November 2005. In addition to the work at Molyhil, low level airborne photography and magneticsurveys have been flown at Hatches Creek to enable an exploration program for2006 to be finalised. This program will be submitted to the traditional ownersfor approval and is anticipated to result in an agreement being executed andthereafter the grant of title. At Thring Creek a detailed ground magnetic survey is expected to be undertakenbefore the end of the current calendar year. The agreement with the traditionalowners should be executed shortly. Financial review Acquisition of Sunsphere At an extraordinary meeting of Thor held in May 2005 Shareholders approved theacquisition of Sunsphere from Tennant Creek Gold Limited. Under the terms of the acquisition Thor acquired Sunsphere for an aggregateconsideration of £0.7million, satisfied by the payment of £250,000 in cash and£450,000 by the issue of 45,000,000 shares. To fund the cash element of theconsideration, pay associated costs and provide additional working capital, theCompany raised £425,000 by way of a private placing of 42.5 million shares at 1pper Share. Admission to AIM Thor Mining plc was admitted to trading on AIM on 29 June 2005 following thePlacing of 81,675,000 new Ordinary Shares in the company at 2p to raiseapproximately £1 .4m, net of expenses. Post balance sheet developments During July 2005, the Company entered into an agreement to sell uraniumexploration rights to the prospects in Eastern Arunta Province, NorthernTerritory of Australia. Under the agreement Batavia Mining Limited will acquirean interest in tenements from the Company for an initial payment of AUD 20,000with a further AUD 250,000 due on the grant of new mining lease applications.Both elements of the consideration to be settled by the issue of ordinary sharesin Batavia. A 2.5% net smelter return will be payable on future production andBatavia will also provide an environmental bond of AUD 50,000. John W Barr was previously chairman of Batavia and Greg Durack is currently theManaging Director of Batavia. Both parties have an interest in the share capitalof Batavia. On 25 July 2005 the Company granted 10,000,000 share options at an exerciseprice of 3.75 pence per share expiring on 15 June 2009. Thor has been admitted to the Frankfurt Stock Exchange. The Directors believe being quoted on the Frankfurt Stock Exchange will providethe Company with access to the European capital markets. John W Barr Executive Chairman Group Profit and Loss Accountfor the period 3 November 2004 to 30 June 2005 2005 £'000Administrative expenses (99)Operating loss (99)Loss on ordinary activities before taxation (99)Tax on loss on ordinary activities -Loss for the period (99)Retained loss for the period (99)Loss per share - basic 0.15 penceContinuing operations All items relate to continuing operations Group Statement of total recognised gains and losses for the period 3 November2004 to 30 June 2005 2005 £'000Loss for the period (99)Unrealised surplus on foreign exchange 23Total recognised gains and losses related to the period (76) Thor Mining PLCBalance Sheet as at30 June 2005 Group Company 2005 2005 £'000 £'000Fixed assets Intangible assets 685 -Investments - 700 685 700Current assets Debtors 79 1,368Cash at bank and in hand 1,504 179 1,583 1,547Creditors: amounts falling due (7) (7)within one yearNet current assets 1,576 1,540Net assets 2,261 2,240 Capital and reservesCalled up share capital 182 182Share premium 1,750 1,750Foreign exchange reserve 23 -Merger reserve 405 405Profit and loss account (99) (97) Shareholders' funds:Equity 2,261 2,240 Group Cash Flow Statementfor the period 3 November 2004 to 30 June 2005 2005 £'000 Reconciliation of operating loss to net cashinflow from operating activities Operating loss (99)Increase in debtors (3)Decrease in creditors (11)Unrealised exchange gain 23Net cash outflow from operating activities (90) CASH FLOW STATEMENT Net cash outflow from operating activities (90) Capital expenditure (293) (383) Financing 1,887 Increase in cash 1,504 Reconciliation of net cash flow to movement in net debt Increase in cash in the period 1,504Change in net debt 1,504Net funds at 3 November -Net funds at 30 June 1,504 Notes to the Financial Statements for the period 3 November 2004 to 30 June 2005 1. The Directors are not recommending the payment of anordinary share dividend. 2. Loss per share on the net basis is calculated on ordinaryactivities after taxation of £99,000 and on 64,360,000 ordinary shares being theweighted average in issue and ranking for dividend during the period. No dilutedloss per share is presented as the effect of exercise of outstanding options isto decrease the loss per share. 3. The financial information set out in this Preliminaryannouncement does not constitute statutory accounts as defined in section 240 ofthe Companies Act 1985. Results for the period ended 30 June 2005 are abridged from the 2005 AnnualReport and Accounts, which received an unqualified auditor's report and will befiled with the Registrar of Companies following the Annual General Meeting. 4. The Annual Report will be posted to shareholders week commencing on26 September 2005. Further copies will be available from the Company'sregistered office: 3rd Floor, 55 Gower Street, London WC1E 6HQ. 5. The Annual General Meeting of the Company will be held at the officesof Ronaldsons, 3rd Floor, 55 Gower Street, London WC1E 6HQ England, on Wednesday26 October 2005 at 10.00 a.m. Enquiries: John W Barr +61 418 912 885 Thor Mining PLC Executive Chairman John Simpson 020 7512 0191 ARM Corporate Finance Ltd Nominated Adviser Amanda 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