The directors of Thor Mining Plc have advised that they have entered into an option agreement with Power Metal Resources Plc to divest the Pilot Mountain Tungsten Project in Nevada, USA, for an agreed value of US$1.8 million.
- Power Metal Resources Plc and its wholly owned subsidiary Golden Metal Resources Ltd have secured an option (the option) to acquire a 100% interest in Pilot Mountain.
- Power Metal will pay US$25 000 in cash to Thor Mining and issue to Thor Mining 500 000 new Power Metal ordinary shares of 0.1p (ordinary shares) at an issue price of 2.5p (£12 500 of ordinary shares), for a 60 day option period to complete due diligence and acquire the project.
- Upon option exercise, Power Metal will pay US$115 000 in cash to Thor Mining and US$1 650 000 payable through the issue to Thor of 48 118 920 ordinary shares at an issue price of 2.5p per share (initial consideration shares).
- In addition, Power Metal will issue to Thor 12.5 million warrants to subscribe for ordinary shares with an exercise price of 4p per ordinary share and life to expiry of three years.
- Furthermore, a US$500 000 milestone payment will become payable in ordinary shares, if Golden Metal publishes a JORC or 43-101 compliant resource at Pilot Mountain which increases against current declared levels by 25% across total indicated and inferred categories within two years.
- Proceeds from the sale will be directed towards further exploration activities at the Company's copper and gold projects – Alford East, South Australia (SA) and Ragged Range, Western Australia (WA).
Nicole Galloway Warland, Managing Director of Thor Mining, commented: “We are very pleased to enter into an option agreement with Power Metals for the 100% sale of Pilot Mountain Project in Nevada, USA. This strategic divestment of a non-core asset is in line with our focus on copper and gold projects; with the acceleration of exploration activities towards exploration drilling activities at Ragged Range Project in the Pilbara WA, and progressing baseline studies for In-situ Recovery for copper and gold at Alford East Project, SA.”
Read the article online at: https://www.globalminingreview.com/finance-business/01092021/thor-mining-announces-pilot-mountain-project-sale-option/
You might also like
Forming part of its plans to increase gold production, TRX Gold Corp. has announced that its new 1000 tpd capacity ball mill has arrived on site at the Buckreef Gold Project, Tanzania.