Thor Mining Plc (ASX: THR) announced on 6th March 2019 that the company would focus on a new copper-focused company, Enviro Copper Limited and it also signed a Memorandum of Understanding (MOU) for the vending of its interest in the Kapunda copper project.
Enviro Copper is expected to seek listing in the near term.
An MOU has been executed between Thor Mining, Environmental Copper Recovery Pty Ltd (ECR) and Environmental Metals Recovery Pty Ltd, to merge their respective interests and form a new company namely Enviro Copper Limited.
ECR holds an earn-in right of 75% on Kapunda copper project, which is agreeable to ISR and Environmental Metals holds an earning right to 75% of Moonta copper project comprising the northern region of EL5984, subject to due diligence. THR holds 60% rights interest in ECR for the A$1.8 million in project funding amount.
Under the Memorandum, the company will give up its interest in ECR and acquire a 25% pre-listing interest in Enviro Copper for total funding of A$0.6 million and for the consideration of additional A$0.4 million, THR will hold a right to acquire 5% seed capital interest in Enviro Copper Limited. THR will reportedly hold upto 30% equity stake in the new firm pre-listing and the qualified shareholders will hold first option to invest post-listing.
However, the agreement is subjected to the implementation of a binding Farm-in and Joint Venture Agreement, with regards to the Kapunda project. The agreement also remains conditional over the acquisition of Moonta project by Environmental Metals Recovery Pty Ltd from Andromeda Metals Limited (ASX: ADN)
Enviro Copper targeted portfolio:
The targeted portfolio for the new entity will include hosting of Kapunda copper project, which hosts an estimated ISR amenable total Inferred Mineral Resource of 119,000 tonnes of copper, and Moonta Copper project with an estimated ISR amenable exploration target range of 430,000 and 713,000 tonnes of copper.
The Kapunda copper project, which is situated ~90km north-west of Adelaide, possess copper oxide mineralisation, which is classified as an Inferred mineral resource of 30.3MT with a 0.24% grade of copper and a total of 73,000 tonnes of contained copper. The same project also possesses secondary copper sulphide mineralisation, which is also classified as an Inferred mineral resource, of 17.1Mt with a 0.27% grade of copper and a total of 46,000 tonnes of contained copper. The company previously disclosed the proof of concept for the project.
The Moonta project, which is located on the Yorke Peninsula, consist of dipping copper oxide mineralisation zones, with a deep weathering trough, estimated to extend over a strike length of 11Km. The project has a variable amount of geological data from drilling in and additional data from the geophysical survey and is entirely covered with a sedimentary cover. The data from the area, where the drilling is prominent, marked a grading of 0.18 to 0.23% of copper.
The stock of the company last traded at A$0.022 on 27 February 2019, with the market capitalization of A$15.77.
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