Thor Mining (ASX: THR, AIM: THR) have successfully raised A$843,183 (£570,000) through a placement of 57 million shares priced at £0.01 each to clients of Simple Investments to help finance further work at its Molyhil Tungsten and Molybdenum Project project.
Chairman Mick Billing added the funds will also be used for the exploration and evaluation programs in progress for its Dundas and Spring Hill gold projects.
Completion of the placement and receipt of funds is expected to be finalised by 16 February 2012. The placement uses part of Thor's available 15% capacity under ASX Listing Rule 7.1 and brings the total issued shares in the company up to more than 700.8 million shares.
Molyhil recently had its tonnage increased by 25% to 4.7 million along with an increase in contained tungsten and molybdenum by 10% and 46% to more than 13,100 tonnes and 10,400 tonnes respectively.
The company had said late last month that an updated ore Reserve and mining plan are due this month with results from 12,839 metres of reverse circulation drilling, 1,816 metres of diamond drilling and three underground exploration shafts and cross cuts.
Also due this month are an expected reserve upgrade for Molyhill from mining consultancy Runge Limited as well as updated feasibility study.
Thor will then need to secure offtake agreements and finance for Molyhil before the company will move to tender for design, construct and EPCM work.
Billings had previously told Proactive Investors that Thor could be potentially turning the first sod at Molyhil early in the second half of this year and be in production in the second half of 2013.
In addition, Proteus EPCM Engineers is preparing an optimisation addendum to the previous capital and operating cost estimates to reflect the recently announced process improvements.
These improvements lifted the projected metallurgical recovery of tungsten for Molyhil to 75%, up from the previous estimate of 67%.
Of the tungsten in this stream, 30% should be recoverable at relatively low cost.
Located in the Northern Territory, Thor's wholly owned Molyhil project comprises two adjacent outcropping iron rich skarn bodies, marginal to a granite intrusion, containing scheelite (tungsten) and molybdenite mineralisation.
The resource area covers 250 metres of strike and has 410 metres of vertical extent.