Thor Mining (ASX: THR, AIM: THRO) has raised £555,000 (about A$857,000) through a share placement in the UK, which will fund the company's working capital requirements as it progresses the Molyhil Tungsten and Molybdenum Project in the Northern Territory.
The company has completed the placement of 44.4 million shares to UK sophisticated clients of broker Simple Investments.
Completion of the placement and receipt of the funds are due for July 4, 2012.
The placement falls within the available 15% capacity of the company's issued capital prior to the placement.
Thor is moving closer to a development decision for the Molyhil project, which can support an initial four year mine life, based on the recently upgraded JORC Reserve of 1.64 million tonnes at 0.42% tungsten and 0.13% Molybdenum.
Importantly, this reserve represents only 35% of the resource tonnage at Molyhil, leaving plenty of upside potential to extend project life.
Molyhil has clear value in today's market, which will be demonstrated when the Definitive Feasibility Study is released later this year.
Following the completion of the study, Thor will need to secure offtake agreements and finance for Molyhil before the company will move to tender for design, construct and EPCM work.
The company is on track for production from the project in late 2013.
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