Thor continues talks over Spring Hill royalty sale
Thor Mining updated the market on the sale of the royalty it holds over the Spring Hill gold project on Monday.
The ASX and AIM-traded firm said the royalty entitlement comprises AUD 5.70 per ounce of gold produced from the tenements where the gold produced is sold for up to AUD 1,500 per ounce.
It also consisted of AUD 13.30 per ounce of gold produced from the Spring Hill tenements where the gold produced is sold for amounts over AUD 1,500 per ounce.
Thor Mining noted that on Monday, the gold price sat at around AUD 2,600.00 per ounce.
“The company has received indicative offers and has entered into an exclusivity arrangement with a selected party that has commenced due diligence and preparation of final agreement documentation,” the board said in its statement.
“Unfortunately aspects of the due diligence process, in particular a site visit, have been delayed due to Covid-19 travel restrictions.
“Suitable alternative arrangements have now been made, and Thor has extended the timeframe for due diligence completion to 30 April.”
Thor said the agreement with the selected party prevented the release of the terms of the agreement or the identity of the party until final agreement execution, however it said it expected to be in a position to advise further towards the end of April.
At 1317 BST, shares in Thor Mining were up 1.31% in London, at 0.16p.