REG - Thor Energy PLC - Formation of Joint Venture

Thor EnergyAnnouncement

14/08/2024 07:00

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RNS Number : 4042A  Thor Energy PLC  14 August 2024

14 August 2024

Thor Energy PLC

 

("Thor" or the "Company")

 

Formation of Joint Venture

Molyhil Project, Northern Territory

 

The Directors of Thor Energy Plc ("Thor") (AIM, ASX: THR, OTCQB: THORF) are
pleased to announce that, further to the announcement on 24 November 2022 in
relation to the Farm-in Funding Agreement and the announcement on 24 April
2024 in relation to the Completion of Stage 1 Earn-In Commitment, a joint
venture Agreement ("JV") with ASX-listed Investigator Resources Limited
("IVR"), operating as Fram under the Heads of Agreement ("HoA"), has been
formalised for the Molyhil and Bonya (EL29701 only) Projects, in the Northern
Territory.

Highlights:

§ JV formed with IVR completing by spending $1,000,000 on the tenements
(Stage 1 commitment) and the transfer of 25% interest in the Molyhil tenements
and the sale of Thor's 40% interest in Bonya tenement EL29701 (Table 1 and 2).

§ The initial interest for the parties is 25% Fram and 75% Molyhil.

§ IVR will now issue Thor A$250,000 worth of IVR shares upon the
formalisation of Fram's 25% JV interest.

§ Fram can opt to continue to earn up to 80% interest by spending up to, a further $7,000,000 on 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 a meaningful
interest in the Molyhil Project.

 

 

 

 

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

"The Directors are delighted that the Stage 1 Commitment has been completed
and that Fram is progressing with developments on this exciting
tungsten/molybdenum deposit. The increase in the mineral resource endowment is
underpinning feasibility work at Molyhil.

"The commitment shown by Fram in diligently working through all aspects of
this deposit is to be applauded.

"The Molyhil divestment and Bonya sale (EL29701) will 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

Formation of the Joint Venture

Under the execution of the Stage 1 obligations, a JV Agreement was executed
between Fram and Molyhil on 13 August 2024 ("JV Commencement Date"). The
initial JV interests of the parties are 25% Fram and 75% Molyhil in Molyhil,
with the 40% sale of Bonya EL29701 (Table 1 and 2).

Stage 1 Joint Venture Consideration

On the formalisation of Fram's 25% JV interest, IVR will 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 (an
amount additional 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).

As announced on (ASX/AIM: 31 May 2024
(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 4.65 million tonnes at
0.26% WO(3) (Tungsten trioxide), 0.09% Mo (Molybdenum), and 0.04% Cu (Copper)
using a 0.05% WO(3) cut-off.

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

 

Figure 1: Tenement & Prospect Location Plan

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure 2: Molyhil Project location showing adjacent Bonya tenement EL29701

 

 

 

 

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
 Zeus Capital Limited (Nominated Adviser and Joint Broker)  Tel: +44 (0) 203 829 5000
 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
 Dom Barretto / 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.

 

About Thor Energy Plc

The Company is predominantly focused on uranium and energy metals that are
crucial in the shift to a 'green' energy economy. Thor has several highly
prospective projects that give shareholders exposure to uranium, vanadium,
copper, tungsten, lithium, nickel and gold, located in the favourable mining
jurisdictions of 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 region of Colorado and
Utah, 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
Estimate.

Thor also holds a 26.3% interest in a private Australian copper development
company EnviroCopper Limited (ECL), which are working on the Kapunda copper
mine and the Alford West copper project, both situated in South Australia, and
both considered amenable to recovery by way of ISR.

Thor holds 75% of the advanced Molyhil tungsten project, including measured,
indicated and inferred resources, 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.

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.

For further information on Thor Energy and to see an overview of its projects,
please visit the Company's website at https://thorenergyplc.com/
(https://thorenergyplc.com/) .

 

The Company notes that for the relevant market announcements noted above, that
it is not aware of any new information or data that materially affects this
information and that all material assumptions and technical parameters
underpinning any estimates continue to apply and have not materially changed.

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