Thor Mining PLC Spring Hill Royalty Sale Update (0164I)

TIDMTHR

RNS Number : 0164I

Thor Mining PLC

30 March 2020

THOR MINING PLC

SPRING HILL ROYALTY SALE UPDATE

The directors of Thor Mining Plc ("Thor") (AIM, ASX: THR) are pleased to provide a progress update on the sale of the royalty it holds in respect of the Spring Hill gold project.

The royalty entitlement comprises:

-- A$5.70 p er ounce of gold p rod uced from the S p ring Hill te neme nts whe re the gold produced is sold for up to A$ 1,5 00 per ounce; and

-- A$13.30 p er ounce of gold p roduced from the S p ring Hill tenements where the gold p roduced is sold for amounts over A $1 , 5 00 per ounce.

At the time of writing the gold price sits at approximately A$2,600.00 per ounce.

The Company has received indicative offers and has entered into an exclusivity arrangement with a selected party that has commenced due diligence and preparation of final agreement documentation. Unfortunately aspects of the due diligence process, in particular a site visit, have been delayed due to COVID 19 travel restrictions. Suitable alternative arrangements have now been made, and Thor has extended the timeframe for due diligence completion to 30 April.

The agreement with the selected party prevents release of the terms of the agreement or the identity of the party until final agreement execution, however the Company expects to be in a position to advise further towards the end of April.

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Enquiries:

 
Mick Billing             +61 (8) 7324        Thor Mining PLC        Executive Chairman 
                           1935 
 Ray Ridge                +61 (8) 7324        Thor Mining PLC        CFO/Company 
                           1935                                       Secretary 
 Colin Aaronson/            +44 (0) 207 383   Grant Thornton UK LLP  Nominated Adviser 
  Richard Tonthat/ Niall     5100 
  McDonald 
 Nick Emerson               +44 (0) 1483      SI Capital Ltd         Joint Broker 
  Claire Louise Noyce        413 500           Hybridan LLP           Joint Broker 
  /                          +44 (0) 203 764 
  John Beresford-Peirse      2341

Updates on the C o m pan y 's activities are regular ly p o sted on Thor's we bsite w w w.th o r m i n i ng .c o m , which includes a facility to regi ster to receive these updates by email, and on the Co m pan y's twitter page @ThorMining.

Ab o u t T hor M i n i ng PLC

Thor Mining P LC (AI M, A S X: THR) is a r esources comp any quoted on the AIM M a rket of the London Stock Exchange and on ASX in Austr alia.

Thor holds 1 0 0% of the ad v anced Molyhil t ungsten p r oject in t he No rthe rn T e rr ito ry of Aust r alia, for w hich an updated feasibility study in August 2018(1) suggest ed attr a ctive retur ns.

Adjacent Molyhil, at Bonya, Thor holds a 40% interest in deposits of tungsten, copper, and vanadium, including Inferred Resource estimates for the White Violet and Samarkand tungsten deposits and the Bonya copper deposit (2).

Thor a lso holds 1 0 0% of t he Pilot Mountain tungst en p roject in Nevada U SA which has a JORC 20 12 Indicated and Inferred Res o u rces Estimate (3) on 2 of the 4 k nown deposits. The US Department of the Interior has confirmed that tungsten, the primary resource mineral at Pilot Mountain, has been included in the final list of Critical Minerals 2018.

Thor holds a 25% in ter est Aust r alian copper d evelopment company EnviroCopper Limited (with rights to increase its interest to 30%). EnviroCopper Limited holds:

-- r ights to earn up to a 7 5% interest in the mineral rights and claims over the resource on the p o r tion of the historic Kapunda copper mi ne in South Aust r alia recover able by way of in situ recove ry; and

-- rights to earn up to 75% of the Moonta copper project, also in South Australia comprising the northern portion of exploration licence EL5984 and includes a resource estimate for several deposits.

Thor also holds a production royalty entitleme nt from t he S p ring Hill Gold project of :

-- A$5.70 p er ounce of gold p rod uced from the S p ring Hill te neme nts whe re the gold produced is sold for up to A$ 1,5 00 per ounce; and

-- A$13.30 p er ounce of gold p roduced from the S p ring Hill tenements where the gold p roduced is sold for amounts over A $1 , 5 00 per ounce.

N ot e s

   (1) Refer  ASX and AIM an n o u ncement  of  23   August   2 0 18 
   (2) Refer  ASX and AIM an n o u ncements  of  26   November   2 0 18 and 29 January 2020

(3) Refer AIM ann o un cement of 13 December 2018 and ASX ann o unce ment of 14 December 2018

Refer AIM a nn o un c e m e nt of 10 F e b r u ary 2 0 18 a nd ASX ann o uncement of 12 February 2 0 18

   Refer  ASX and AIM an n o u ncement  of  15 August   2 0 19

Refer AIM a nn o un c e m e nt of 26 F e b r u ary 2 0 16 a nd ASX ann o uncement of 29 February 2 0 16

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