Hawkstone Mining Ltd. (ASX: HWK) announced that the meeting of shareholders to approve the acquisition of 100% of the shares of USA Lithium From Thor Mining has been cancelled and the parties have mutually elected to terminate the USA Lithium acquisition agreement.
THOR MINING PLC
USA Lithium Investment Update
Further to its announcements of 29 March 2018, 10 April 2018 and 8 June 2018 the Board of Thor Mining Plc (“Thor” or the “Company”) (AIM, ASX: THR), provides the following update on the proposed disposal of the Company’s interest in USA Lithium Pty Ltd (“USA Lithium”).
The Company notes an announcement on ASX of 15th June 2018 by Hawkstone Mining Limited (“Hawkstone”) (ASX: HWK) that the meeting of shareholders to approve the acquisition of 100% of the shares of USA Lithium has been cancelled and the parties have mutually elected to terminate the USA Lithium acquisition agreement.
It is noted that USA Lithium received 12,500,000 deemed option shares in Hawkstone providing additional working capital of just over £140,000 for USA Lithium operational purposes at the A$0.02 deemed Hawkstone share price.
For clarity, Thor was to receive 15,625,000 shares in Hawkstone for disposal of its US Lithium holding which at the latest Hawkstone share price of A$0.022 equated to gross proceeds of approximately £195,000 in Hawkstone shares, or £176,000 after deduction of the 10% return that was due to Pembridge Resources (AIM:PERE) from whom Thor acquired its USA Lithium interest in June 2017.
Thor retains its holding in USA Lithium and is liaising with the management team to determine the way forward for the business. This includes consideration of disposal alternatives, together with progressing operational opportunities for the projects held. In this regard we would note that drilling approvals at the Big Sandy Lithium project have been received from the Bureau of Land Management in Nevada.
With effect from 14 June 2018 Thor’s requirement to return 10% of disposal proceeds to Pembridge reduces to 5% for a further 12 months.
Thor has a significant cash balance at bank covering all planned expenditures until well into 2019 in the pursuance of its three key projects: Molyhil Project, Australia (100% owned tungsten/molybdenum project), Kapunda Copper Project, Australia (Thor earning into a 45% effective interest) and Pilot Mountain Project, Nevada, USA (100% owned tungsten/copper/silver project).
Further announcements are anticipated shortly in respect of the Company and its three key projects above.
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 2015¹ suggested attractive returns.
Thor also holds 100% of the Pilot Mountain tungsten project in Nevada USA which has a JORC 2012 Indicated and Inferred Resources Estimate² on 2 of the 4 known deposits.
Thor is also acquiring up to a 60% interest Australian copper development company Environmental Copper Recovery SA Pty Ltd, which in turn holds rights to earn up to a 75% interest in the mineral rights and claims over the portion of the historic Kapunda copper mine in South Australia recoverable by way of in situ recovery.
Thor has a material interest in US Lithium Pty Limited, an Australian private company with a 100% interest in a Lithium project in Nevada, USA.
Finally, Thor also holds a production royalty entitlement from the Spring Hill Gold project³ of:
· A$6 per ounce of gold produced from the Spring Hill tenements where the gold produced is sold for up to A$1,500 per ounce; and
· A$14 per ounce of gold produced from the Spring Hill tenements where the gold produced is sold for amounts over A$1,500 per ounce.