Letter of Intent for Molyhil off-take agreement

RNS Number : 6293Q

Thor Mining PLC

16 October 2013

 



16 October 2013

THOR MINING PLC

U.S. GROUP OFFERS CONCENTRATE OFF-TAKE AGREEMENT

FOR MOLYHIL TUNGSTEN PROJECT

The Directors of Thor Mining PLC ("Thor") (AIM, ASX: THR) are pleased to announce receipt of a Letter of Intent from United States-based Global Tungsten & Powders Corp. of Pennsylvania(GTP), in respect of scheelite concentrate off-take arrangements for Thor's wholly owned Molyhil tungsten project in the Northern Territory of Australia.

The Letter of Intent provides terms for a future off-take agreement, subject to successful technical and legal due diligence, and also to Thor securing necessary funding to develop the Molyhil project, including:

·       Off-take for in the order of 70-75% of the annual production of scheelite concentrate from Molyhil.

·      Off-take for the current 4 planned year life-time of the mine with right of first refusal to a 2 year extension term.

·      A market price of the scheelite concentrate based on discounts to the London Metal Bulletin (LMB) Low Tungsten APT European free-market price¹.

¹Tungsten concentrate pricing is generally structured at a discount to the tungsten APT price reflecting the value added via the upgrade to APT.

Global Tungsten & Powders Corp. is a division of the Austria based Plansee Group, whose primary emphasis is the manufacture of tungsten and molybdenum powders.  With two locations and more than 90 years of experience, GTP is a world leader in powder technology, high temperature metallurgy, and inorganic chemistry.

Commenting, Mr Mick Billing, Executive Chairman of Thor Mining, said: "This is both a milestone and a major forward step for the Molyhil project and we welcome the participation of Global Tungsten & Powders which is a significant player in the global tungsten industry.  This is very much a first step agreement and remains subject to due diligence requirements and financing being met but nonetheless, the potential for near term development of Molyhil has been significantly enhanced."

Enquiries:

Mick Billing	[phone]	Thor Mining PLC	Executive Chairman
Allan Burchard	[phone]	Thor Mining PLC	CFO/Company Secretary
Colin Aaronson/ David Hignell /Jamie Barklem	[phone]	Grant Thornton UK LLP	Nominated Adviser
Nick Emerson/ Andy Thacker	[phone]	SI Capital Limited	Broker
Alex Walters	[phone] [phone]	Cadogan PR	Financial PR

Updates on the Company's activities are regularly posted on Thor's website www.thormining.com, which includes a facility to register to receive these updates by email.

 

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