Thor Energy PLC (THR)

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Thor Energy sells mining joint venture to Tivan for GBP4.3 million

(Alliance News) - Thor Energy PLC on Tuesday said it has signed a term sheet with Darwin, Australia-based minerals firm Tivan Ltd to sell the FRAM joint venture for AUD8.8 million, or GBP4.3 million.

The US and Australia-focused mineral exploration company said the joint venture holds the Molyhil tungsten, molybdenum and copper project in the Northern Territory of Australia.

Thor Energy holds 75% of the joint venture through its subsidiary Molyhill Mining Ltd, while Investigator Resources Ltd holds the remaining 25%.

The company said it will receive a AUD6.6 million portion of the consideration for the sale.

The deal also includes three successive annual deferred completion payments, which are payable in cash, shares or a combination of both, Thor Energy added.

It described the deal as a "significant, non-dilutionary boost" to its cash position, which strengthens its ability to advance its core Hy-Range natural hydrogen and helium project in south Australia.

Thor Energy said the companies are targeting completion of the deal in December.

"The Molyhil project requires, amongst other things, specific sector expertise and a significant balance sheet to unlock the potential of the project, of which Tivan has both. Then there are the obvious synergies with Tivan's Sandover project to the [north-east] of Molyhil," said Thor Energy Chair Alastair Clayton.

"For Thor shareholders, the monetisation of Molyhil means a significant inflow of cash to the company over the next 12 months and beyond. This means more resources to advance Hy-Range and less dilution to achieve this."

Shares in Thor Energy jumped 16% to 0.64 pence in London on Tuesday afternoon.

By Michael Hennessey, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

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