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 |
+61 (8) 7324 1935 |
Thor Mining PLC |
Executive Chairman |
Allan Burchard |
+61 (8) 7324 1935 |
Thor Mining PLC |
CFO/Company Secretary |
Colin Aaronson/ David Hignell /Jamie Barklem |
+44 (0) 207 383 5100 |
Grant Thornton UK LLP |
Nominated Adviser |
Nick Emerson/ Andy Thacker |
+44 (0) 1483 413500 |
SI Capital Limited |
Broker |
Alex Walters |
+44 (0) 7771 713608 +44 (0) 207 839 9260 |
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.
