Thor Mining PLC CONCENTRATE OFF-TAKE AGREEMENT FOR MOLYHIL (6191Q)
October 16 2013 - 2:12AM
UK Regulatory
TIDMTHR
RNS Number : 6191Q
Thor Mining PLC
16 October 2013
16 October 2013
THOR MINING PLC
U.S. GROUP OFFERS CONCENTRATE OFF-TAKE AGREEMENT
FOR MOLYHIL TUNGSTEN PROJECT
The Directors of Thor Mining PLC ("Thor") (AIM, ASX: THR) are
pleased to announce receipt of a Letter of Intent from United
States-based Global Tungsten & Powders Corp. of
Pennsylvania(GTP), in respect of scheelite concentrate off-take
arrangements for Thor's wholly owned Molyhil tungsten project in
the Northern Territory of Australia.
The Letter of Intent provides terms for a future off-take
agreement, subject to successful technical and legal due diligence,
and also to Thor securing necessary funding to develop the Molyhil
project, including:
-- Off-take for in the order of 70-75% of the annual production
of scheelite concentrate from Molyhil.
-- Off-take for the current 4 planned year life-time of the mine
with right of first refusal to a 2 year extension term.
-- A market price of the scheelite concentrate based on
discounts to the London Metal Bulletin (LMB) Low Tungsten APT
European free-market price(1).
(1)Tungsten concentrate pricing is generally structured at a
discount to the tungsten APT price reflecting the value added via
the upgrade to APT.
Global Tungsten & Powders Corp. is a division of the Austria
based Plansee Group, whose primary emphasis is the manufacture of
tungsten and molybdenum powders. With two locations and more than
90 years of experience, GTP is a world leader in powder technology,
high temperature metallurgy, and inorganic chemistry.
Commenting, Mr Mick Billing, Executive Chairman of Thor Mining,
said: "This is both a milestone and a major forward step for the
Molyhil project and we welcome the participation of Global Tungsten
& Powders which is a significant player in the global tungsten
industry. This is very much a first step agreement and remains
subject to due diligence requirements and financing being met but
nonetheless, the potential for near term development of Molyhil has
been significantly enhanced."
Enquiries:
Mick Billing +61 (8) 7324 Thor Mining Executive
1935 PLC Chairman
Allan Burchard +61 (8) 7324 Thor Mining CFO/Company
1935 PLC Secretary
Colin Aaronson/ +44 (0) 207 Grant Thornton Nominated
David Hignell 383 5100 UK LLP Adviser
/Jamie
Barklem
Nick Emerson/ +44 (0) 1483 SI Capital Broker
Andy Thacker 413500 Limited
Alex Walters +44 (0) 7771 Cadogan PR Financial
713608 PR
+44 (0) 207
839 9260
Updates on the Company's activities are regularly posted on
Thor's website www.thormining.com, which includes a facility to
register to receive these updates by email.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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