Thor Mining increases interest in Australia's EnviroCopper
Thor Mining has increased its equity interest in private Australian company EnviroCopper (ECL), it announced on Wednesday, to 30%.
The AIM-traded firm said it had paid the final tranche of AUD $0.19m to complete the AUD 0.4m additional earn-in agreement, and had provided notice to ECL to exercise its right to increase its holding.
It said it would be issued with additional shares in ECL to take the equity holding to 30%, with the additional shares expected to be issued by 16 November.
Thor said ECL had earned its initial farm-in interest in 50% of the Kapunda project, and provided notice that it would now proceed to a 75% interest, with a “very active” period of field activities scheduled over the next six months, including drilling at both Kapunda and Alford West.
“This additional investment in EnviroCopper represents outstanding value for Thor and Thor investors,” said executive chairman Mick Billing.
“Through EnviroCopper, we hold interests in resources totalling 233,000 tonnes of copper in situ, with substantial upside for copper and the potential to also extract gold.”
Billing said global copper prices had improved “strongly” in recent weeks and, with the optimism that a Covid-19 vaccine could be available in 2021, the rebound showed signs of economic recovery.
“EnviroCopper have scheduled a host of field activities at both Kapunda and Alford West during the next few months, expected to add considerable value to each project.
“While the additional investment by Thor will be utilised on some of this work, the bulk of the expenditure requirement through to mid-2021 is funded, particularly at Kapunda, by the previously-reported Australian government grant.”
At 1259 GMT, shares in Thor Mining were up 7.22% at 1.23p.