Mineral exploration and mining company, Thor Mining Plc (ASX: THR) has announced about the acquisition of two Australian private companies- Pilbara Goldfields Pty Limited (PGL) and Hamersley Metals Pty Limited (“HML”).
The acquisition move comes on the back of the company’s anticipation of the crystallisation of value from the current projects at Molyhil and Kapunda projects, catering to tungsten/molybdenum and copper respectively.
The company has secured mine construction ready status for its Molyhil molybdenum and tungsten project and is presently processing to secure project-level finance for the mine construction stage.
Also, on 5th March, the company had announced its intention to dispose its Kapunda copper project to Enviro Copper Limited (THR to hold 30% interest in Enviro Copper Limited).
Post these two transactions, the company’s interest would be focused on the Bonya tungsten, vanadium and copper project. The company holds a 40 percent interest in the project.
To aid the company to make progress with the above strategy, the company has decided to acquire PGL and HML. Between these two companies, they hold two approved licences and seven licence requests. These licenses are at various stages of approval. The licences and applications are for the gold and uranium covering an aggregate area of seven hundred and eighty-four sqkms in Pilbara region of the Northern Territory of Australia, and WA.
The two acquisitions are valued at a total consideration of £450,500 payable through the issue of 53 million new Thor ordinary shares of 0.01p each at an issue price of 0.85p per share, and these shares are subject to lock-in for up to six months.
Post the shareholder approval, PGL and HML would receive twenty-six and a half million warrants in the company, and the warrant allows them to subscribe for a further twenty-six and a half million ordinary shares at a price of 1.30p per share with three-year life to expiry from today.
Further, the company informed that the two vendors would also receive an additional 22.5 million ordinary shares if any project enters commercial production.
To fund its acquisition, the company has undertaken a strategic financing raising of £0.4 million through the issue of ~47 million new ordinary shares at an issue price of 0.85p per share and also, each financing share is accompanied with a warrant to subscribe for a further new ordinary share at a price of 1.30p with a three-year life.
To aid the company in its transition and acquisition, the company is on the lookout to appoint a new external non-executive director to the Board. The new director would be provided 2.5 million options on formal appointment and an additional 2.5 million upon 12 months service. These options would have a 3-year exercise period.
In another announcement, the company informed the exchange on 26 March 2019, that it received clearance for the exploration work on five Bonya targets from the AAPA. Drilling is expected to commence in April.
Stock Information:
The stock has delivered a YTD return of -29.17%. It has provided a negative return of 39.29%,26.09%, and 22.73% in the past six months, three months and one month respectively.
The shares of THR were trading flat at A$0.017 on ASX (As on Thu 28 March 2019).
THR’s market capitalization is $12.19 million. The ASX reported average trading volume is 84,787. The company’s EPS stood at -0.003 AUD, as per the latest ASX update.
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