Following a March announcement, Thor Mining has acquired interests in tenements adjacent to its Molyhil tungsten project in Australia’s Northern Territory.
Thor Mining (ASX:THR, LSE:THR) has received ministerial approval to acquire tungsten, copper and vanadium tenements adjacent to the company’s Molyhil tungsten project in Australia’s Northern Territory.
Through the agreement, Thor is acquiring a 40-percent interest in exploration license EL29701 and a 100-percent interest in exploration license EL29599; the former hosts 13 outcropping tungsten deposits, the Bonya copper deposit and the Jervois vanadium/titanium deposit. Meanwhile, the latter license is considered prospective for copper mineralization.
Executive chairman Mick Billing expressed his excitement about the expansion in a statement, highlighting how the Molyhil project will benefit from the acquisition.
“This is outstanding news for the Molyhil development. The potential to increase both the scale and the life of the proposed Molyhil operation is very exciting,” he said.
“The proximity of the Bonya deposits to Molyhil should add significantly to the project economic returns, dovetailing with our commercialisation strategy for Molyhil.”
Thor will be contributing a consideration of AU$550,000 in fully paid shares as part of the agreement. In the meantime, Rox Resources (ASX:RXL) and Arafura Resources (ASX:ARU) are working on a Deed of Assumption for Thor to take Rox’s place in a joint-venture that encapsulates the Bonya tenements.
When the sale was first announced in March, Rox managing director Ian Mulholland commented on the win-win situation that would present itself for both companies.
“The Bonya project has a number of areas of outcropping tungsten and molybdenum mineralization, and when added to Thor’s nearby Molyhil tungsten and molybdenum mineral resources, it makes a very exciting project,” he said in a statement.
“Rox will retain a significant exposure to any future developments at Bonya and Molyhil through its shareholding in Thor and will allow the company to place a clear focus on its other projects in Western Australia.”
The Bonya tenements are located in the Eastern Aileron Province between the Jervois base metals deposits to the east and the Molyhil tungsten molybdenum deposit to the west.
Thor’s stock price grew 13.04 percent to AU$0.026 per share by the end of trading on Tuesday (September 25).
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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.