UK-headquartered Thor Mining has signed an agreement to acquire up to 80pc interest in the mineral rights from Spencer Metals for its Alford East copper-gold project located on the Yorke Peninsula in South Australia, the company said in a statement.
The project includes numerous oxide copper-gold prospects including Alford East, Netherleigh Park, and Netherleigh North, each with extensive previous drilling.
Copper-oxide intercepts include;
- 122m @ 0.63% Cu from 95m (ALDDH09) including14m @ 2.26% Cu from 111m
- 76m @ 0.95% Cu from 138m (ALDDH01) including14m @ 2.18% Cu from 146m
- 14m @ 1.5% Cu from 162m, and 34m @ 0.5% Cu from 190m (MPBD3).
Thor Mining has paid cash consideration of AUD30,000 ($21,969) upon the execution of the agreement. The company can get 51pc interest by funding the project with AUD500,000 ($366,000) by November 2022, along with additional consideration of AUD250,000 ($183,000) in Thor Mining shares in the first stage.
In the second stage, it can earn 29pc more interest by funding $750,000 of expenditure till November 2024, apart from issuing AUD250,000 in shares.
Spencer will hold a free carried 20pc interest in the project until the decision to mine is made after Thor acquires 80pc of interest.
Thor Mining said that global copper demand and pricing would improve substantially in both the short and medium-term in post-COVID-era, and hence, has decided to increase its exposure to potential low-cost copper production projects.
($1 = AUD1.35863)