Aim- and ASX-listed Thor Mining has acquired 100% of the shares in private Australian company, American Vanadium, which has interests in uranium- and vanadium-focused projects in Colorado and Utah, in the US.
The exploration and development company also said on June 1 that it would pursue strategic financing to allow acceleration of its project interests, including work on new projects.
In terms of the project acquisition, Thor Mining is looking to expand its commodity project portfolio in North America into uranium and vanadium and said that nonbinding term sheets executed provide it with a 30-day exclusivity period to conduct due diligence, secure necessary approvals and execute formal agreements.
American Vanadium has 100% interests in 199 contiguous claims in the Uravan Mineral Belt in south-western Colorado, and 100 claims in south-eastern Utah, which is about 40 km north of the town of Moab.
Utah claims have reported extensive historical drilling with significant intersections of uranium and vanadium, whereas Colorado claims include historical Radium Mountain and Wedding Bell groups of mines with intermittent production activity over a period of more than 100 years.
There is also a nearby processing plant, which has historically taken third party ore for toll treatment, located within economic transport distance, potentially reducing environmental and financial development hurdles.
As such, the company indicated that it has considerable operational experience in the US and will use the in-country team to immediately start with field work.
The acquisition consideration comprises an exclusivity fee of A$100 100, of which A$50 100 will be satisfied by the issue of just over 8.3-million ordinary shares in Thor Mining.
The A$144 000 acquisition fee will be satisfied by the issue of 24-million ordinary shares, and future payments will be made through the issue of performance rights, over three stages, to receive up to 102-million ordinary shares subject to achievement of project milestones.
In terms of fundraising, Thor has raised gross proceeds of A$700 000 via the placing of 140-million new ordinary shares at a price of A0.5c a share and A$130 000 through the conditional placing to Metal Tiger and subscription by company directors of a total of 30-million new ordinary shares, also at a price of A$0.5c a share.
The vendors of American Vanadium and their associated parties are subscribing for A$200 000 in the placing, which Thor says reflects their strong support for the project under its ownership.
The funds raised will be devoted to exploration activities at the uranium and vanadium projects subject to this acquisition, as well as further investment in EnviroCopper with a primary objective of drill testing the gold potential at Kapunda, and follow-up field work at the Pilbara project where visible gold and anomalous nickel have been encountered in early stage work and general working capital.