TIDMTHR
RNS Number : 4531Y
Thor Mining PLC
09 September 2020
9 September 2020
THOR MINING PLC
US URANIUM / VANADIUM PROJECT
COMPLETION OF ACQUISITION
The directors of Thor Mining Plc ("Thor" or the "Company") (AIM,
ASX: THR) are pleased to advise completion of the acquisition of
American Vanadium Pty Ltd (AVU), including its subsidiaries and
uranium and vanadium projects.
AVU holds interests in uranium and vanadium focussed projects in
Colorado and Utah in the United States of America. The Company
announced on 1 June 2020 an option agreement to acquire AVU,
subject to satisfaction of due diligence requirements.
Thor will now proceed with the issue of 24 million Ordinary
shares of 0.01p each, in full payment of the Acquisition Fee for a
100% interest in AVU.
Highlights:
-- Acquisition of American Vanadium complete.
-- Colorado project claims include historical mines with
historical production activity over a period of more than 100
years.
-- Utah project claims have reported historical drilling with
significant intersections of uranium and vanadium.
-- Field sampling by Thor during due diligence period showed
assay results of high grade uranium (up to 1.25% U(3) O(8) ) and
vanadium (up to 3.47% V(2) O(5) )
Mick Billing, Executive Chairman of Thor Mining, commented:
"We are very pleased to complete the acquisition of 100% of
American Vanadium and its high grade uranium and vanadium
claims."
"Thor has a well balanced portfolio of very attractive assets
with copper, gold, tungsten & now uranium & vanadium. "
PROJECT ACQUISITION
The Company has completed the acquisition of 100% of the shares
in American Vanadium Pty Ltd, a private Australian company, which
in turn owns 100% each of the shares in Colorado company Standard
Minerals INC (Standard), and Utah company Cisco Minerals INC
(Cisco).
Acquisition consideration comprises
- A$100,100 exclusivity fee, which has been paid, of which
A$50,100 was satisfied by the issue of 8,350,000 ordinary shares of
0.01p each in Thor ("Ordinary Shares") ("Exclusivity Fee").
- A$144,000 acquisition fee satisfied by the issue of 24 million
Ordinary Shares ("Acquisition Fee"), to be issued shortly.
- Future payments through the issue of performance rights, over
three stages, to receive up to 102 million Ordinary Shares subject
to achievement of project milestones.
Following the acquisition, the parties have agreed a series of
performance payments, of:
-- First performance - A$108,000 through the issue of 18,000,000
Ordinary Shares, on 15 or more samples from three of more
adits/shafts at Radium Mountain & Wedding Bell prospects
returning grades >= 0.1% U(3) O(8) , or 1.0% V(2) O(5) , or
equivalent* within six months of execution of the Share
Agreement.
-- Second Performance - A$252,000 through the issue of
42,000,000 Ordinary Shares on drilling ore grade intercepts from at
least three holes from any deposits within the licences, at a
product of grade and thickness of >= 0.4% U(3) O(8,) or
equivalent*. For example, 4m @ 1,000ppm U(3) O(8) or 1m @ 4,000ppm
U(3) O(8) .
-- Third Performance - A$252,000 through the issue of 42,000,000
Ordinary Shares on reporting a mineral resource in either the
inferred, indicated or measured category (reported in accordance
with the JORC Code, 2012 Edition) of, or equivalent* to 5million
tonnes @ >= 0.1% U(3) O(8) , or 1.0% V(2) O(5) , or
equivalent*.
* Uranium equivalent will be calculated taking into account, in
addition to uranium, credits for vanadium making up part of the
relevant polymetallic deposit that have a reasonable potential to
be recovered and sold, according to a formula that will be used and
published in accordance with clause 50 of the JORC Code.
MARKET OUTLOOK FOR URANIUM AND VANADIUM
Uranium
Power from nuclear reactors accounted for 20% of US domestic
power requirement in 2019, while globally nuclear generation
supplies approximately 10% of demand. Nuclear power is acknowledged
to provide stable, baseload, and low carbon power supply.
A total of 53 new nuclear reactors are under construction
globally, with solid order books for more and approximately 300
additionally proposed. The inference is that uranium demand is
likely to increase over the next 15 years or so. The US imports
much of its uranium requirement for power generation.
Depressed uranium pricing over the last decade has resulted in
very few new projects commencing development. This suggests that a
supply shortage may emerge in the next few years.
The Nuclear Fuels Working Group (NFWG) that was established last
year in response to the Section 232 from the USA uranium sector has
released their recommendations. The key points are that a uranium
stockpile will be established and the nuclear fuel cycle will be
streamlined, with purchasing of enrichment and conversion
capability, and also a streamlined approvals process.
Among the key recommendations from the NFWG strategy is the
proposal of direct purchases of uranium and nuclear fuel services
to expand five-fold the American Assured Fuel Supply strategic
inventory stockpile.
Vanadium
Vanadium is an important contributor to improving the tensile
strength of steel, with the overwhelming bulk of vanadium demand
applied to production of reinforcing steel to add tensile strength
to concrete. It is also used in aerospace & has chemical and
catalyst applications. More recently it has developed a significant
market in battery applications with vanadium redox flow batteries
used to store and release large amounts of energy.
China accounts for over 50% of global supply, most of which is
co-production from steel slag. Supply is largely constrained by
capped co-production capacity, and there are a limited number of
global primary producers.
In 2018, China mandated a standard for Chinese grade 3 rebar,
substantially increasing the vanadium content of reinforcing
steel.
ASSETS AND INFRASTRUCTURE
A processing plant which has historically taken ore from the
region on a toll treatment basis is located near Blanding, within
relatively close proximity to the claims held by these companies.
Thor have not had contact with the operators of this plant to date,
however this may represent a potential low cost entry into
production.
Colorado Claims
Standard holds 199 contiguous Bureau of Land Management (BLM)
claims in south west Colorado, and within the Uravan Mineral Belt.
The claims include the Wedding Bell and Radium Mountain groups of
mines which are reported to have operated during the first world
war and again in the second half of the 20(th) century (USGS
Professional paper 300(a) ).
(a) https://pubs.er.usgs.gov/publication/pp300
The Uravan Mineral Belt and adjacent uranium-vanadium mining
districts of the Colorado Plateau are reported to have produced,
over the past 100 years, in excess of 85million lbs U3O8 and over
660 million lbs of V2O5(2) from the Salt Wash sandstone formation
of the Plateau. The average production grades from the Uravan
Mineral Belt from the 1940's to January 1979 are reported be 0.25%
U3O8 and 1.29% V2O5 (Thamm. et al., 1981(b) ) Average vanadium to
uranium ratios are reported to vary from 0.5 : 1 to 40 : 1.
(b) www.osti.gov/servlets/purl/6512174
During the due diligence period, the Company carried out a
program of sampling over and nearby, historical mine workings in
the Colorado claims which have been shown to host very high grade
uranium and vanadium mineralisation, which is considered typical of
historical production performance in the Uravan Mineral Belt.
Assay results from these samples have been previously reported
in:
www.thormining.com/sites/thormining/media/pdf/asx-announcements/20200708-us-uranium.vanadium-sampling-assays.pdf
, and also in
www.thormining.com/sites/thormining/media/pdf/asx-announcements/20200721-high-grade-uranium-assays.colorado-field-sampling.pdf
Utah Claims
Cisco holds 100 BLM claims in south east Utah approximately 40km
north of the town of Moab. Significant uranium and vanadium
mineralisation is reported from drilling activities by Hunt Oil,
Mineral Division, in 1980 and 1981; Terra Ventures (TSX-V: TAS),
May 21 2007.
https://www.thormining.com/sites/thormining/media/miscellaneous/terra-ventures-20070521.pdf
Thor Mining wishes to reiterate that the Hunt Oil estimate 1980
- 81 does not comply with either the JORC or NI 43-101 guidelines
for mineral resource reporting and is therefore not a valid
resource estimate. The Hunt Oil estimate does however provide
substantial indication of widespread uranium - vanadium
mineralisation in the Cisco mineral claims in a similar geological
setting to multiple deposits elsewhere in the region including the
previously mined Colorado mineral claims included in this
acquisition.
The review team visited the site to assess access issues
associated with potential drilling campaigns. The area has good
local infrastructure and is at the northern margin of the historic
uranium mining area of Thompson Yellow Cat mining district.
Available data to date of the Vanadium King (Utah) historical
drilling suggests that the historical drilling programs focussed
solely on uranium mineralisation hosted in the Brushy Basin Member
of the Jurassic Morrison Formation. Historical mining of the nearby
Thompson Creek group of mines reported high-grade uranium ore from
the underlying Salt Wash Member - a likely focus for future work by
Thor. Thor's local consultants have suggested that the deeper and
normally higher-grade Salt Wash Member remains substantially
untested by drilling, in this area.
FURTHER INFORMATION ON THE ACQUISTION
The following information in relation to the acquisition is
provided pursuant to Schedule 4 of AIM Rules for Companies:
1. The vendors of American Vanadium Pty Ltd are:
a. Celtic Capital Pty Ltd (20%)
b. Coral Brook Pty Ltd (20%)
c. Paranoid Enterprises Pty Ltd (40%)
d. Hollywood Marketing (WA) Pty Ltd (20%)
2. The most recent audited financial statements, being for the
period ending 30 June 2019, the Consolidated Group reported a net
loss of A$196,766 (approximately GBP109,100) and net assets of
A$214,262 (approximately GBP119,000).
SHARE ISSUE
The Company will shortly issue 24,000,000 Ordinary Shares in
full payment of the Acquisition consideration.
SETTLEMENT AND DEALINGS
Application will be made to the AIM Market of the London Stock
Exchange ("AIM") for a total of 24,000,000 Ordinary Shares,
pursuant to the Initial Issue, which will rank pari passu with the
Company's existing issued Ordinary Shares, to be admitted to
trading. Dealings on AIM are expected to commence at 8:00am on or
around 15 September 2020 ("Admission").
TOTAL VOTING RIGHTS
For the purposes of the Financial Conduct Authority's Disclosure
Guidance and Transparency Rules ("DTRs"), following Admission, Thor
will have 1,306,171,467 Ordinary Shares in issue with voting rights
attached. Thor holds no shares in treasury. This figure of
1,306,171,467 may be used by shareholders in the Company as the
denominator for the calculations by which they will determine if
they are required to notify their interest in, or a change to their
interest in the Company, under the ASX Listing Rules or the
DTRs.
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 Secretary
1935
Samantha Harrison/Niall +44 (0) 207 Grant Thornton Nominated Adviser
McDonald 383 5100 UK LLP
Nick Emerson +44 (0) 1483 SI Capital Ltd Broker
413 500
Competent Person's Report
The information in this report that relates to exploration
results is based on information compiled by Richard Bradey, who
holds a BSc in applied geology and an MSc in natural resource
management and who is a Member of The Australasian Institute of
Mining and Metallurgy. Mr Bradey is an employee of Thor Mining PLC.
He has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person
as defined in the 2012 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves'. Richard Bradey consents to the inclusion in the report
of the matters based on his information in the form and context in
which it appears.
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, and on the Company's
twitter page @ThorMining.
About Thor Mining PLC
Thor Mining PLC (AIM, ASX: THR) is a resources company quoted on
the AIM Market of the London Stock Exchange and on ASX in
Australia.
Thor holds 100% of the advanced Molyhil tungsten project in the
Northern Territory of Australia, for which an updated feasibility
study in August 2018(1) suggested attractive returns.
Adjacent Molyhil, at Bonya, Thor holds a 40% interest in
deposits of tungsten, copper, and vanadium, including an Inferred
resource for the Bonya copper deposit(2).
Thor is also acquiring up to a 30% interest Australian copper
development company EnviroCopper Limited, which in turn holds
rights to earn up to a 75% interest in the mineral rights and
claims over the resource on the portion of the historic Kapunda
copper mine in South Australia recoverable by way of in situ
recovery , and also holds rights to earn a 75% interest in portion
of the Moonta Copper project also in South Australia, and is
considered amenable to recovery by way of in situ recovery .
Thor also holds 100% of the Pilot Mountain tungsten project in
Nevada USA which has a JORC 2012 Indicated and Inferred Resources
Estimate(3) on 2 of the 4 known 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.
The Company also has exciting gold interests at Ragged Range in
the Pilbara region of Western Australia.
Notes
(1) Refer ASX and AIM announcement of 23 August 2018
(2) Refer ASX and AIM announcement of 26 November 2018
(3) Refer AIM announcement of 13 December 2018 and ASX
announcement of 14 December 2018
Refer AIM announcement of 10 February 2016 and ASX announcement
of 12 February 2018
Refer ASX and AIM announcement of 15 August 2019
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END
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