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  • Thor Mining Locks In A$1M Funding Facility 0 comments
    Feb 18, 2013 12:37 AM

    Thor Mining (ASX: THR) has successfully landed a three year, A$1 million secured debt facility from a private sophisticated investor.

    Funds drawn under the facility are principally to be used to fund exploration and development expenditure on the Molyhil Tungsten-Molybdenum Project and the Spring Hill Gold Project, both located in Northern Territory.

    The facility will be secured against Thor's interest in the tenements at Molyhil and Spring Hill.

    Mick Billing, executive chairman, commented: "We are very pleased to have secured this facility which demonstrates investor confidence in Thor and our projects.

    "It will allow us to plan ongoing activities with confidence, including work which has the potential to add to project life and value at Molyhil, and follow up promising exploration opportunities at Molyhil, Spring Hill and Dundas."

    Key terms

    The facility will be made available in two equal tranches of $500,000, with the facility attracting an interest rate of 7% per annum, payable six monthly.

    Thor will issue the lender with tranches of three year options to subscribe for CDIs which, if exercised, would raise funds equivalent to the $1 million face value of the facility.

    Molyhil

    Molyhil is located 220 kilometres northeast of Alice Springs within the prospective polymetallic province of the Proterozoic Eastern Arunta Block in the Northern Territory.

    Following the completion of a Definitive Feasibility Study last year, Thor has been focused on negotiations to secure agreements for offtake and project finance.

    Discussions with potential customers for project concentrates are ongoing.

    Molyhil has an Open Cut Reserve of 1.64 million tonnes at 0.42% WO3 and 0.13% Mo for 6.900 tonnes of WO3 and 2,200 tonnes of Mo.

    First production of concentrates is expected to begin from late in 2013.

    Spring Hill

    Late last year Thor increased its stake in the Spring Hill Project to 51% after partner Western Desert Resources(ASX: WDR) transferred a further 26% stake.

    The transfer recognises the expenditure that Thor has made on the project as it builds up the resource inventory, which currently stands at 10 million tonnes at 1.4 grams per tonne (g/t) gold for 450,000 ounces (cut-off grade of 0.5g/t).

    Thor plans to acquire an 80% interest in the project, and is currently evaluating development options.

    Spring Hill remains highly prospective for additional near surface mineralisation at previously identified satellite targets as well as new targets identified from the evaluation of high resolution aeromagnetic (helimag) data.

    Significant potential exists for exploration upside, both at depth and from prospects nearby.

    The Spring Hill gold deposit is believed to be an indicator of much more substantial mineralisation at depth.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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