Molyhil Update

RNS Number : 7952C

Thor Mining PLC

19 November 2009

 



THOR MINING PLC

MOLYHIL UPDATE

Thor Mining PLC ("the Company" or "Thor"), AIM, ASX: "THR" the specialist metals company focused on advancing tungsten-molybdenum projects in the Northern Territory of Australia, advises that it has taken a decision to scale back activities on the Company's flagship Molyhil Tungsten- Molybdenum Project ("Molyhil") in response to the continued weakness in international markets for molybdenum and tungsten.

While the price for molybdenum, in particular, improved strongly during the middle part of this year, it has since weakened again. At the time of writing the price for molybdenum roasted concentrates, as published in "Metal Pages", was US$11.80/lb compared with a published price of US$34.00/lb in September 2008. In addition the weakness in the United States dollar this year has further impacted on Molyhil's economics.

The Directors remain committed to Molyhil and strongly believe in its long term viability, however we are unable to predict when prices are likely to recover to levels which would support mining development. We have therefore taken immediate steps to conserve cash. These steps include:

• The cessation of work with third party engineering companies on verifying capital and operating cost savings for Molyhil;

• A 50% reduction in Directors remuneration; and

• The redundancy of the Chief Executive Officer Ian Sheffield-Parker whose responsibilities shall be covered by the Executive Chairman, Mick Billing until circumstances permit an expansion of the role. The terms of Ian's employment require 3 months notice and his redundancy payment reflect those terms. 

Ian Sheffield-Parker has provided valuable input during his period with the Company, particularly in restructuring the proposed development of Molyhil, to better suit its size and scale. We wish him well in his further endeavours.

The Directors will continue to explore for uranium and base metals in its exploration projects and assess opportunities to participate in projects which will add lasting shareholder value, however the current step of cash conservation in respect of Molyhil is considered necessary to ensure the immediate viability of the Company.

Enquiries:

Mick Billing	+ 61 (0)414 741 007	Thor Mining PLC	Executive Chairman
Laurie Ackroyd	[phone]	Thor Mining PLC	CFO/Company Secretary
John Simpson	+ 44 (0)20 7776 6550	Daniel Stewart & Co. plc	Nominated Adviser

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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