PERTH (miningweekly.com) – Mineral developer Thor Mining has inked an option agreement to sell its gold interests in the Northern Territory and Western Australia for $3.5-million.
The company currently holds the Spring Hill gold project, in the Northern Territory, and the Dundas gold project, in Western Australia.
Under the terms of the agreement, privately-held PC Gold would have a 30-day option period to acquire Thor’s interest in the two projects. In addition to the $3.5-million payable in cash, PC Gold would also, on the completion of the acquisition, pay Thor a royalty of $6/oz of gold produced from the Spring Hill tenements, where gold is sold for up to A$1 500/oz, and a A$14/oz royalty if gold is sold for more than A$1 500/oz.
“The sale of Spring Hill and Dundas gold projects is a great result for Thor and will generate substantial cash upside for the company in a challenging market,” said executive chairperson Mick Billing.
“It also allows Thor to continue to focus on its core tungsten projects in Australia and the US. In addition, the continued exposure for Thor to the Spring Hill gold project via the attractive royalty stream provides a free carried ongoing interest in this project.”
The agreement was subject to PC Gold receiving an unconditional financing offer from private equity firm RIVI Capital.
Edited by: Creamer Media Reporter
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