- Minerals explorer Thor Mining (THR) has secured an exclusive option to acquire 100 per cent of Australian private company, American Vanadium (AV)
- The company has also received commitments for $830,000 in share placements
- Thor has a 30-day option period to do its due diligence work at AV’s tenements across Utah and Colorado
- If the deal goes ahead, Thor will pay around $50,000 and issue over 32 million shares to secure AV
- The vendors of AV have subscribed for a $200,000 slice of the $700,000 share placement; a considerable show of faith in their potential new owners
- A further $130,000 will be raised, subject to shareholder approval, via a conditional placement to Metal Tiger and Thor’s company directors
- The funds raised will be used for exploration activities across the Thor portfolio
- Thor Mining closed Monday’s session 57.1 per cent higher at 1.1 cents per share
Thor Mining (THR) has secured an exclusive option to acquire Australian private company, American Vanadium (AV), and has received commitments for $830,000 in share placements.
Acquisition
The non-binding terms sheet gives Thor a 30-day option to conduct due diligence, secure necessary approvals, and execute formal agreements in advance of acquiring AV and its interests.
AV holds tenements in Colorado and Utah which appear prospective for vanadium and uranium.
The acquisition consideration comprises several steps.
Phase one will require Thor to pay a $100,100 exclusivity fee for the option. Around half of that sum will be satisfied by the issue of 8.35 million Thor shares.
Phase two will see Thor pay a $144,000 acquisition fee, to be settled via the issue of 24 million shares.
Subsequent to the acquisition, further performance payments may be issued upon the attainment of three key milestones. A total of $612,000 may be paid via the issue of 102 million shares across the three phases if exploration at the sites achieves sufficient grades and mineral resource estimates to trigger the payments.
If the final mineral resource benchmark is met, Thor could have a serious mining venture on its hands – with the milestone set at 5 million tonnes of ore at greater than 0.1 per cent uranium (U3O8), or 1.0 per cent vanadium (V2O5), or equivalent.
Thor Executive Chairman Mick Billing says the acquisition is an exciting prospect for the company.
“This is an outstanding opportunity for Thor and its investors,” Mick said.
“Deposits from the Uravan Mineral Belt have produced large quantities of high grade uranium and vanadium ore over decades.
“We have a Colorado-based team ready to commence a sampling program, [and] we look forward to the results of that work. With funds available from this capital raising, [we’ll] move on to permitting and drilling as soon as possible,” he added.
Placement
Thor has raised $700,000 through a heavily oversubscribed placement to new institutional and sophisticated investors.
Among the new investors, the vendors of American Vanadium and their associated parties are subscribing for $200,000; a significant show of faith in their new potential owners.
A further $130,000 will be raised, subject to shareholder approval, via a conditional placement worth $120,000 to Metal Tiger, and a $10,000 subscription by company directors.
A total of 170 million shares will be issued, at a price of 0.5 cents each, across the placements.
Also subject to shareholder approval, there will be one option attached for every two shares purchased, exercisable within three years at a price of one cent each.
The funds raised will be used for exploration activities across the Thor portfolio.
The primary focus will be the new U.S. uranium-vanadium tenements – as long as the acquisition goes ahead as planned – along with testing the gold potential at Kapunda, and follow up field work at the company’s Pilbara gold-nickel project.
Let’s see if Thor can hammer this one home.
Thor Mining closed Monday’s session 57.1 per cent higher at 1.1 cents per share.