The directors of Thor Mining Plc have advised that Power Metal Resources Plc has exercised the option to acquire 100% interest in 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 exercised their option to acquire a 100% interest in Pilot Mountain.
- 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 2.5 p 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 4 p 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 pleased to announce the completion of the due diligence process by Power Metals and its written confirmation to exercise the option to acquire the 100% of Pilot Mountain Project in Nevada, USA.
“This strategic divestment will allow Thor to focus on our copper and gold projects and provide further capital to accelerate exploration activities, including RC drilling, at Ragged Range Project in the Pilbara WA and progress baseline studies for in-situ recovery for copper and gold at Alford East Project, SA.
“This sale is also the right mix of cash and shares to provide ongoing exposure to the Pilot Mountain Project.”
Read the article online at: https://www.globalminingreview.com/finance-business/01112021/thor-mining-announces-pilot-mountain-sale-option/