Thor Mining (ASX: THR) is well placed to focus on advancing its gold and tungsten projects in Western Australia and the Northern Territory after successfully raising £270,000 (A$419,871) through a share placement.
The company placed 27 million shares to UK sophisticated clients of Simple Investments at £0.01 per share.
Chairman Mick Billing commented, “We are delighted to have raised these additional funds which will help to fund the aggressive exploration and evaluation programs we have in progress at the Dundas (WA) and Spring Hill (NT) gold projects, and also to further fund the Molyhil Tungsten/Molybdenum Project (NT) feasibility study.”
Completion of the placement and receipt of funds is expected to be finalised by 29 November 2011.
Following the allotment of these shares Thor Mining will have 628,512,950 shares on issue.
Molyhil Tungsten and Molybdenum Project – Northern Territory
Last month Thor Mining received positive early outcomes from a definitive feasibility study (NYSE:DFS) on its Molyhil Tungsten and Molybdenum Project, which shows a compelling economic case for the development of the project.
Importantly, current supply shortages of tungsten due to export restrictions from China have seen the tungsten price skyrocket this year, which has added value to the project.
The DFS highlighted potential cash operating margins of A$98 per tonne of ore processed for a phase one pit of 1.4 million tonnes of ore.
Capex is estimated at $66 million for an annual throughput of 400,000 tonnes per year and operating costs of $79 for each tonne of ore mined and processed.
Spring Hill Gold Project – Northern Territory
During the September quarter Thor Mining began a 10 hole diamond drilling program to confirm and extend the existing Spring Hill resource in the .
Additional drilling is planned to follow up high grade intercepts from drilling undertaken in 1989-92 that returned 26 metres at 2.56 grams per tonne (g/t) from 59 metres including 16 metres at 4g/t from 63 metres.
Drill testing these targets is scheduled for the beginning of the 2012 dry season.
Thor Mining is earning up to an 80% interest from Western Desert Resources (ASX: WDR) in the Spring Hill Project.
Dundas Gold Project - Western Australia
Due to persistent wet weather, work at Dundas has focused on progressing permitting for the planned drill testing of the Algron, Bifrost, and Asgard prospects.
A detailed flora and fauna study was submitted to the WA Department of the Environment in support of proposals for the scheduled drilling programs. Approval for the program is still pending.
Approval and commencement of the proposed drill program is anticipated during the December quarter.