REG - Thor Energy PLC - Completion of Stage 1 Earn-In Commitment - Molyhil

Thor EnergyAnnouncement

24/04/2024 07:00

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RNS Number : 7747L  Thor Energy PLC  24 April 2024

 

24 April 2024

Thor Energy PLC

 

("Thor" or the "Company")

 

Completion of Stage 1 Earn-In Commitment

Molyhil Project, Northern Territory

 

The Directors of Thor Energy Plc (AIM, ASX: THR, OTCQB: THORF) are pleased to
announce that ASX-listed Investigator Resources Limited ("IVR"), operating as
Fram under the Heads of Agreement ("HoA"), has notified Thor, and Thor agrees
that Fram has met the "Stage 1 Commitment" obligations at the Molyhil and
Bonya Projects, in the Northern Territory.

Highlights:

§ Fram, a wholly owned subsidiary of IVR, has successfully completed the
"Stage 1 Commitment" obligations by funding A$1m of exploration activities
(geophysics and drilling - results pending), as per the HoA, signed (ASX/AIM:
(https://www.londonstockexchange.com/news-article/THR/farm-in-funding-agreement-molyhil-project/15728495)
(https://www.londonstockexchange.com/news-article/THR/farm-in-funding-agreement-molyhil-project/15728495)
24 November 2022
(https://www.londonstockexchange.com/news-article/THR/farm-in-funding-agreement-molyhil-project/15728495)
).

§ Under the HoA, Fram is now entitled to a 25% interest in the Tenements (25%
Fram and 75% Molyhil).

§ Fram can now elect to transfer a 25% interest in the Tenements, and a Joint
Venture ("JV") will become effective.

§ IVR as per the HoA is to issue Thor A$250,000 worth of IVR shares upon
formalising Fram's 25% JV interest.

§ Fram can opt to continue to earn up to 80% interest in the Tenements via a
three-stage process.

§ The JV at Molyhil will allow Thor to focus on its priority USA Uranium
assets and Alford East Copper-REE Project while retaining an interest in the
Molyhil Project.

 

Nicole Galloway Warland, Managing Director of Thor Energy, commented:

"The Directors are delighted that this Stage 1 Commitment milestone has been
met and are excited to move to the next phase of the HoA, working with IVR to
complete all JV documentation.

"The Molyhil/Bonya Earn-in and the JV allow Thor to retain an equity interest
in the prospective Molyhil tenements with reduced operational risk. Thor
benefits from exploration upside on the Tenements and receives considerations
in the form of cash and IVR shares.

"The Molyhil divestment and Bonya sale support the Company's focus on its
priority US uranium assets, where we see the most significant and nearest-term
value potential for Thor's shareholders."

 

Key Transaction Details

Stage 1 Earn-In

Fram has fulfilled the expenditure requirement of funding A$1,000,000 in
exploration activities, including the geophysics gravity survey and diamond
drilling program (results pending), completing the "Stage 1 Commitment" by
notifying Thor and Thor agreeing that the commitment has been met.

Fram is now entitled to a 25% interest in the Tenements. Molyhil and IVR must
also execute all documents and forms necessary to affect the transfer,
including Molyhil's 40% interest in the Bonya tenement (EL29107), to Fram.

If Fram gives notice in writing to Molyhil that it does not elect to transfer
the 25% interest in the Tenements, Fram will be deemed to have withdrawn from
the HOA without earning any equity in the Tenements.

Formation of the Joint Venture

Under the execution of the Stage 1 obligations, a JV will come into effect on
the date on which Fram and Molyhil execute the JV agreement ("JV Commencement
Date"). The initial JV interests of the parties will be 25% Fram and 75%
Molyhil.

Stage 1 Joint Venture Consideration

On the formalisation of Fram's 25% JV interest, IVR is to issue Thor A$250,000
worth of IVR shares at a deemed price equal to the higher of the Volume
Weighted Average Price for the 15-day trading period immediately preceding the
25% earn-in date, or A$0.05 per share.

Stage 2 Earn-In

Fram shall, within 28 days of the JV Commencement Date, give Molyhil written
notice of its intention to earn a further 26% interest in the Molyhil
Tenements ("Stage 2 Earn-In Notice"), bringing its total interest to 51%.

If Fram issues a Stage 2 Earn-In Notice, Fram must spend A$2,000,000 (which
amount is in addition to the Stage 1 Commitment) on exploration on or before
the third anniversary of the JV Commencement Date ("Stage 2 Commitment") to
earn the additional 26%.

Upon Fram meeting the Stage 2 Commitment, Fram will be entitled to a 51%
interest in the Tenements.

Stage 3 Earn-In

Fram shall, within 28 days of the Stage 2 Completion Notice, give Molyhil
written notice of its intention to earn a further 29% interest in the
Tenements ("Stage 3 Earn-In Notice"), bringing its total interest to 80%.

If Fram issues a Stage 3 Earn-In Notice, Fram must spend A$5,000,000 (which
amount is in addition to the Stage 1 and Stage 2 Commitments) on exploration
on or before the sixth anniversary of the JV Commencement Date ("Stage 3
Commitment") to earn the additional 26%.

Upon Fram meeting the Stage 3 Commitment, Fram will be entitled to an 80%
interest in the Tenements.

Project Background

The Molyhil tungsten-molybdenum deposit is located 220km north-east of Alice
Springs (320km by road) within the prospective polymetallic province of the
Proterozoic Eastern Arunta Block, in the Northern Territory (Figure 1).

On 7 April 2021 (ASX/AIM: 7 April 2021
(https://wcsecure.weblink.com.au/LSE_news/2021/04/08/Thormining_15023364.pdf)
), Thor reported a revised Mineral Resource Estimate comprising Measured,
Indicated, and Inferred Mineral Resources, totalling 4.4 million tonnes at
0.27% WO(3) (Tungsten trioxide), 0.10% Mo (Molybdenum), and 0.05% Cu (Copper)
using a 0.07% WO(3) cut-off.

https://www.thormining.com/sites/thormining/media/pdf/asx-announcements/20210408-molyhil-mineral-resource-estimate-updated.pdf
(https://www.thormining.com/sites/thormining/media/pdf/asx-announcements/20210408-molyhil-mineral-resource-estimate-updated.pdf)

 

Figure 1: Tenement & Prospect Location Plan

 

The Bonya tungsten and copper tenement (EL29701) is located approximately 30km
to the northeast of Molyhil (Figure 1). Thor, in JV with Arafura, holds a 40%
equity interest in the tenements.

A full background on the project is available on the Thor Energy website:
https://thorenergyplc.com/projects/molyhil-tungsten-project/.

 

Figure 2: Molyhil Project location showing adjacent Bonya tenement

 

 

Table 1: Molyhil Tenements

 

 Project  Tenement  Area kms(2)  Area ha.  Holders                 Company Interest
 Molyhil  EL22349   228.10                 Molyhil Mining Pty Ltd  100%
 Molyhil  EL31130   9.51                   Molyhil Mining Pty Ltd  100%
 Molyhil  ML23825                95.92     Molyhil Mining Pty Ltd  100%
 Molyhil  ML24429                91.12     Molyhil Mining Pty Ltd  100%
 Molyhil  ML25721                56.2      Molyhil Mining Pty Ltd  100%
 Molyhil  AA29732                38.6      Molyhil Mining Pty Ltd  100%
 Molyhil  MLS77                  16.18     Molyhil Mining Pty Ltd  100%
 Molyhil  MLS78                  16.18     Molyhil Mining Pty Ltd  100%
 Molyhil  MLS79                  8.09      Molyhil Mining Pty Ltd  100%
 Molyhil  MLS80                  16.18     Molyhil Mining Pty Ltd  100%
 Molyhil  MLS81                  16.18     Molyhil Mining Pty Ltd  100%
 Molyhil  MLS82                  8.09      Molyhil Mining Pty Ltd  100%
 Molyhil  MLS83                  16.18     Molyhil Mining Pty Ltd  100%
 Molyhil  MLS84                  16.18     Molyhil Mining Pty Ltd  100%
 Molyhil  MLS85                  16.18     Molyhil Mining Pty Ltd  100%
 Molyhil  MLS86                  8.05      Molyhil Mining Pty Ltd  100%

 

Table 2: Bonya Tenement (EL29701)

 

 Bonya  EL29701  204.5      Molyhil Mining Pty Ltd  40%

 

The Board of Thor Energy PLC has approved this announcement and authorised its
release.

 

For further information, please contact:

 Thor Energy PLC
 Nicole Galloway Warland, Managing Director               Tel: +61 (8) 7324 1935

 Ray Ridge, CFO & Company Secretary                       Tel: +61 (8) 7324 1935

 WH Ireland Limited (Nominated Adviser and Joint Broker)  Tel: +44 (0) 207 220 1666
 Antonio Bossi / Darshan Patel / Isaac Hooper

 SI Capital Limited (Joint Broker)                        Tel: +44 (0) 1483 413 500
 Nick Emerson

 Yellow Jersey (Financial PR)                             thor@yellowjerseypr.com
 Sarah Hollins / Shivantha Thambirajah / Bessie Elliot    Tel: +44 (0) 20 3004 9512

 

Competent Person's Report

The information in this report that relates to exploration results is based on
information compiled by Nicole Galloway Warland, who holds a BSc Applied
geology (HONS) and who is a Member of The Australian Institute of
Geoscientists. Ms Galloway Warland is an employee of Thor Energy PLC. She has
sufficient experience which is relevant to the style of mineralisation and
type of deposit under consideration and to the activity which she is
undertaking to qualify as a Competent Person as defined in the 2012 Edition of
the 'Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves'. Nicole Galloway Warland consents to the inclusion in the
report of the matters based on her information in the form and context in
which it appears.

 

Updates on the Company's activities are regularly posted on Thor's website
(https://thorenergyplc.com/) which includes a facility to register to receive
these updates by email, and on the Company's X page @thorenergyplc

About Thor Energy Plc

The Company is focused on uranium and energy metals that are crucial in the
shift to a 'green' energy economy. Thor has a number of highly prospective
projects that give shareholders exposure to uranium, nickel, copper, lithium
and gold. Our projects are located in Australia and the USA.

Thor holds 100% interest in three uranium and vanadium projects (Wedding Bell,
Radium Mountain and Vanadium King) in the Uravan Belt in Colorado and Utah,
USA with historical high-grade uranium and vanadium drilling and production
results.

At Alford East in South Australia, Thor has earnt an 80% interest in oxide
copper deposits considered amenable to extraction via In Situ Recovery
techniques (ISR). In January 2021, Thor announced an Inferred Mineral Resource
Estimate¹.

Thor also holds a 26.3% interest in Australian copper development company
EnviroCopper Limited (ECL), which in turn holds rights to earn up to a 75%
interest in the mineral rights and claims over the resource on the portion of
the historic Kapunda copper mine and the Alford West copper project, both
situated in South Australia, and both considered amenable to recovery by way
of ISR.²³ Alligator Energy recently invested A$0.9M for a 7.8% interest in
ECL with the rights to gain a 50.1% interest by investing a further A$10.1m
over four years.

Thor holds 100% of the advanced Molyhil tungsten project, including measured,
indicated and inferred resources⁴, in the Northern Territory of Australia,
which was awarded Major Project Status by the Northern Territory government in
July 2020. Thor executed a A$8m Farm-in and Funding Agreement with
Investigator Resources Limited (ASX: IVR) to accelerate exploration at the
Molyhil Project on 24 November 2022.(6)

Adjacent to Molyhil, at Bonya, Thor holds a 40% interest in deposits of
tungsten, copper, and vanadium, including Inferred resource estimates for the
Bonya copper deposit, and the White Violet and Samarkand tungsten deposits.
⁵ Thor's interest in the Bonya tenement EL29701 is planned to be divested as
part of the Farm-in and Funding agreement with Investigator Resources
Limited.(6)

Thor owns 100% of the Ragged Range Project, comprising 92 km(2) of exploration
licences with highly encouraging early-stage gold and nickel results in the
Pilbara region of Western Australia.

 

Notes

(1)
https://thorenergyplc.com/investor-updates/maiden-copper-gold-mineral-resource-estimate-alford-east-copper-gold-isr-project/

(2)
www.thorenergyplc.com/sites/thormining/media/pdf/asx-announcements/20172018/20180222-clarification-kapunda-copper-resource-estimate.pdf
(http://www.thormining.com/sites/thormining/media/pdf/asx-announcements/20172018/20180222-clarification-kapunda-copper-resource-estimate.pdf)

³
www.thorenergyplc.com/sites/thormining/media/aim-report/20190815-initial-copper-resource-estimate---moonta-project---rns---london-stock-exchange.pdf
(http://www.thormining.com/sites/thormining/media/aim-report/20190815-initial-copper-resource-estimate---moonta-project---rns---london-stock-exchange.pdf)

(4)
https://thorenergyplc.com/investor-updates/molyhil-project-mineral-resource-estimate-updated/

(5)
www.thorenergyplc.com/sites/thormining/media/pdf/asx-announcements/20200129-mineral-resource-estimates---bonya-tungsten--copper.pdf
(http://www.thormining.com/sites/thormining/media/pdf/asx-announcements/20200129-mineral-resource-estimates---bonya-tungsten--copper.pdf)

(6)
https://thorenergyplc.com/wp-content/uploads/2022/11/20221124-8M-Farm-in-Funding-Agreement.pdf

 

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